Korea: Inflation falls to lowest level in over 12 years
August 1, 2012
In July, consumer prices dropped 0.19% over the previous month, down from the 0.09% drop recorded in June. Annual inflation fell from 2.2% in June to 1.5% in July, which was below market expectations of a 2.1% rate and marked the lowest level since May 2000. As a result, annual inflation is now below the Central Bank's target range of 3.0% plus/minus 1.0%. The core inflation index, which excludes more volatile items such as fresh food and energy, was flat over the previous month, following a 0.29% increase in June. Annual core inflation edged down from 1.5% in June to 1.2% in July, the lowest level since February 2000.