Korea: Inflation drops in January
February 2, 2016
In January, consumer were unchanged over the previous month, which came in below the 0.3% rise tallied in December. January’s print mainly reflected that higher prices for food and non-alcoholic beverages offset lower prices for housing, water, electricity and other fuels as well as clothing and footwear.
Inflation moderated from 1.3% in December, which was the highest since August 2014, to 0.8% in January. As a result, inflation remained well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation in January held at 0.7% for the sixth consecutive month.
Core consumer prices, which exclude fresh food and energy prices, increased 0.2% in January over the previous month, which met December’s reading. Regarding annual figures, core inflation inched down from 2.2% in December to 2.1% in January.