Korea: Inflation eases in April
May 1, 2012
In April, consumer prices were flat over the previous month, virtually unchanged from the 0.09% drop recorded in March. Annual inflation, however, inched down from 2.6% in March to 2.5% in April, defying market expectations of a 2.8% rate and marking the lowest level since July 2010. The core inflation index, which excludes more volatile items such as fresh food and energy, added 0.10% over the previous month, which contrasted the 0.38% drop observed in March. Annual core inflation inched down from 1.9% in March to 1.8% in April, the lowest level since December 2010. According to the revised Economic Outlook for 2012, the Central Bank sees inflation at 3.2% this year. For 2013, the Bank expects inflation to moderate to 3.1%.