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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.

The Central Bank expects annual average inflation of 0.7% in 2015 and 1.7% in 2016. FocusEconomics Consensus Forecast panelists expect inflation to average 0.8% in 2015, which is unchanged from last month’s forecast. In 2016, the panel expects average inflation to reach 1.6%, which is down 0.1 percentage points from last month’s estimate.


Author:, Economist

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Korea Inflation Chart


Korea Inflation November 2015

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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