Korea: Inflation is stable in November

Consumer prices dropped 0.7% over the previous month in November, down from October’s 0.2% decrease. This was primarily due to cheaper food and non-alcoholic beverages; transport; and recreation and culture.

Inflation remained at 2.0% in November, matching the Bank of Korea’s target for the second consecutive month and hitting market analysts’ expectations. Core inflation, which excludes fresh food and energy prices, crept up to 1.1% in November from 0.9% in October. Annual average inflation, meanwhile, edged up to 1.6% from 1.5% in November.

Korea Inflation Forecast

FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2019, which is unchanged from last month’s forecast. In 2020, the panel expects inflation to also average 1.9%.