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%).
Author: Ricardo Aceves, Senior Economist