Korea: Inflation increases in October but remains well below target
October 2, 2015
In October, consumer prices were unchanged over the previous month, which was up from the 0.2% decrease tallied in September. October’s print reflected that lower prices for food and non-alcoholic beverages as well as for transport offset higher prices for housing and utilities.
Inflation increased from 0.6% in September to 0.9% in October, which beat market expectations of a 0.8% increase. October’s result was the highest since November of last year, but also marked the 11th 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 in October held at 0.7% for the third consecutive month.
Core consumer prices, which exclude fresh food and energy prices, increased 0.2% in October over the previous month, which contrasted the 0.1% decrease registered in September. Regarding annual figures, core inflation increased from 2.1% in September to 2.3% in October.
Author: Carl Kelly, Economist