Korea Inflation August 2019


Korea: Inflation hits record low in August

September 3, 2019

Consumer prices increased 0.2% over the prior month in August, contrasting July’s 0.3% fall. Higher prices for food and non-alcoholic beverages, and recreation and culture were chiefly behind August’s uptick.

Year-on-year consumer prices were flat in August, weaker than July’s 0.6% rise, moving further below the Bank of Korea’s 2.0% target and marking an all-time low. Moreover, core inflation, which excludes fresh food and energy prices, edged down to 0.8% from 0.9% in July, while annual average inflation inched down to 1.0% from July’s 1.1%. Weak price pressures can be attributed in part to muted economic activity, and could provide ammunition to the Central Bank to carry out further easing.

FocusEconomics Consensus Forecast panelists expect inflation to average 0.9% in 2019, which is down 0.1 percentage points from last month’s forecast. In 2020, the panel expects inflation to average 1.5%.

Author:, Economist

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Korea Inflation Chart

Korea Inflation August 2019

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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