Korea Inflation


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.

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 October 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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