Korea: Inflation jumps in September
October 2, 2012
In September, consumer prices rose 0.66% over the previous month, which nearly doubled the 0.38% increase recorded in August. Annual inflation followed suit and rose from 1.2% in August to 2.0% in September, exceeding market expectations of a 1.8% rate. As a result, annual inflation returned to the Central Bank's target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes more volatile items such as fresh food and energy, rose 0.10% over the previous month, following the 0.19% increase observed in August. Consequently, annual core inflation edged up from 1.3% in August to 1.4% in September. The Central Bank expects inflation to average 2.7% this year before rising to 2.9% next year.