Korea skyline

Korea Inflation April 2021

Korea: Inflation comes in above BoK’s 2% target in April

Consumer prices increased 0.21% in April over the previous month, picking up from the 0.15% rise recorded in March. Looking at the details of the release, food and non-alcoholic beverages prices fell at a more moderate pace in April compared to the previous month, while price pressures for restaurants and hotels increased. Notably, prices for recreation and culture rebounded.

Inflation came in at 2.3% in April, which was up from March’s 1.5% and above the Bok’s 2.0% target, mainly due to a favorable base effect. April’s result marked the highest inflation rate since August 2017. Annual average inflation edged up to 0.7% in April (March: 0.5% yoy). Core inflation rose to 1.4% in April from March’s 1.0% increase.

On the outlook, Jeong Woo Park, economist at Nomura, commented:

“Overall, despite the jump in headline inflation, underlying trends suggest inflation will remain well anchored below the BOK’s 2.0% inflation target. Looking ahead, base effects should fade in May, return to their normal fluctuations and not have any substantial impact on underlying inflation trends. That said, given last year’s plunge in inflation, we expect CPI inflation to stay over 2.0% in Q2 before falling below 2.0% in H2.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest