Korea Inflation February 2017


Korea: Inflation edges down in February

March 3, 2017

Consumer prices in Korea rose 0.3% from the previous month in February, which followed January’s 0.9% increase. The result was mainly driven by higher prices for food and non-alcoholic beverages, along with higher housing prices.

Inflation edged down from January’s four-year high of 2.0% to 1.9% in February. While the result narrowly missed the Bank of Korea’s target of 2.0%, it beat market expectations of a 1.6% rise. Annual average inflation hit 1.2% in February, up from January’s 1.1% increase. Core inflation, which excludes fresh food and energy prices, remained unchanged from a month earlier at 1.5%. Likewise annual average core inflation was stable at January’s 1.6% increase.

The Bank of Korea expects inflation to average 1.8% in 2017 and 1.9% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to increase on the back of higher energy prices. They expect it to average 1.6% in 2017, which is up 0.1 percentage points from last month’s forecast. In 2018, the panel expects inflation to average 1.8%.

Author:, Economist

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Korea Inflation Chart

Korea Inflation February 2017

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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