Korea: Inflation holds well below target in August
September 2, 2015
In August, consumer prices increased 0.2% over the previous month, which matched the reading tallied in July. August’s print reflected that higher prices for food and alcoholic beverages more than offset a decline in prices for transport and health services.
Inflation in August remained at 0.7% for the third consecutive month, which was in line with market expectations. August also marked the ninth straight month with inflation under 1.0%, which is well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation inched down from 0.8% in July to 0.7% in August.
Core consumer prices, which exclude fresh food and energy prices, increased 0.2% in August over the previous month, which equaled the reading registered in July. Regarding annual figures, core inflation inched up from 2.0% in July to 2.1% in August.
Author: Carl Kelly, Economist