Korea: Inflation continues to decelerate
April 1, 2012
In March, consumer prices fell 0.09% over the previous month, which contrasted the 0.38% increase recorded in February. As a result, annual inflation fell from 3.1% in February to 2.6% in March, defying market expectations of a 3.2% rate and marking the lowest level since July 2010. The core inflation index, which excludes more volatile items such as fresh food and energy, fell 0.38% over the previous month, which contrasted the 0.10% increase observed in February. Annual core inflation fell from 2.5% in February to 1.9% in March, the lowest level since December 2010. According to the revised Economic Outlook for 2012, the Central Bank sees inflation at 3.2% this year, an inch below the previously forecasted 3.3%. For 2013, the Bank expects inflation to moderate to 3.1%.