Korea: Inflation falls to lowest level since 2000
September 3, 2012
In August, consumer prices added 0.38% over the previous month, contrasting the 0.19% drop recorded in July. Annual inflation, however, fell from 1.5% in July to 1.2% in August, which was below market expectations of a 1.4% rate and marked, in fact, the lowest level since May 2000. As a result, annual inflation remains below the Central Bank's target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes more volatile items such as fresh food and energy, rose 0.19% over the previous month, following the flat reading observed in July. Annual core inflation inched up from 1.2% in July to 1.3% in August. The Central Bank expects inflation to average 2.7% this year before rising to 2.9% next year.