Korea: Inflation inches higher in October

Consumer prices dropped 0.2% over the previous month in October, contrasting September’s 0.7% rise. The decrease was driven by markedly lower prices for food and non-alcoholic beverages, while prices for alcoholic beverages and tobacco; and health also decreased.

Inflation inched up to 2.0% in October, up from September’s 1.9%, matching the Bank of Korea’s target and marking the highest print since September last year. The rate was also ahead of market expectations of 1.7%. Core inflation, which excludes fresh food and energy prices, inched down from September’s 1.3% to 1.2%. Annual average inflation, meanwhile, remained stable at 1.5%.

Korea Inflation Forecast

FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2019, which is unchanged from last month’s forecast. In 2020, the panel expects inflation to also average 1.9%.