Korea: Inflation inches up in May, remains well below target
June 2, 2015
In May, consumer prices increased 0.3% over the previous month, which was up from the 0.1% rise tallied in April. May’s print mainly reflected higher prices for food and non-alcoholic beverages as well as for transport. In contrast, prices for housing and utilities decreased in May compared to the previous month.
Annual headline inflation inched up from 0.4% in April to 0.5% in May, which was in line with market expectations. April’s print had marked the lowest reading since July 1999. Despite the slight increase in May, inflation remains well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation ticked down from 1.0% in April to 0.9% in May.
Core consumer prices, which exclude fresh food and energy prices, rose 0.3% in May over the previous month, which was up from the 0.1% tallied in April. Regarding annual figures, core inflation increased from 2.0% in April to 2.1% in May.
Author: Carl Kelly, Economist