Korea Inflation December 2016


Korea: Inflation edges down in December

December 30, 2016

Consumer prices rose 0.1% from the previous month in December, contrasting November’s 0.2% drop. The result was mainly driven by higher prices for food, non-alcoholic beverages, clothing and transport.

Inflation edged down from November’s 1.5% to 1.3% in December, just above the 1.2% the markets had expected. The result continued to undershoot the Central Bank’s target rate of 2.0%. In 2016, inflation averaged 1.0%, above the 0.7% in 2015.

Meanwhile, core inflation, which excludes fresh food and energy prices, fell from 1.6% in November to 1.2% in December. In 2016, core inflation averaged 1.6% (2015: 2.2%).

FocusEconomics Consensus Forecast panelists expect inflation to increase on the back of prospects of higher energy prices. They expect it to average 1.5% in 2017, which is unchanged from last month’s forecast. In 2018, the panel expects inflation to average 1.7%.

Author:, Senior Economist

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Korea Inflation Chart

Korea Inflation December 2016

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: National Statistics Office of Korea (KOSTAT)

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