Korea: Inflation inches up in November, but remains well below target
December 1, 2015
In November, consumer prices were down 0.1% over the previous month, which was below the flat reading tallied in October. November’s print reflected that lower prices for food and non-alcoholic beverages as well as for transport more than offset higher prices for clothing and footwear.
Inflation inched up from 0.9% in October to 1.0% in November, which was above market expectations of another 0.9% reading. November’s result was the highest since October of last year and breaks an 11-month streak of inflation readings under 1.0%. However, inflation remains well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation in November held at 0.7% for the fourth consecutive month.
Core consumer prices, which exclude fresh food and energy prices, increased 0.1% in November over the previous month, which was just below the 0.2% decrease registered in October. Regarding annual figures, core inflation ticked up from 2.3% in October to 2.4% in November.
Author: Carl Kelly, Economist