Korea: Inflation moderates in December
December 31, 2018
Consumer prices decreased 0.3% month-on-month in December, a less-pronounced drop than in November, when prices fell 0.7%. In December, lower prices came on the back of cheaper alcoholic beverages and tobacco, transport, communication, and recreation and culture.
Inflation moderated notably in December, falling from 2.0% in November to 1.3%, partly due to lower oil prices and a fuel tax cut. This represented a a five-month low and was below the Bank of Korea’s 2.0% target. Core inflation, which excludes fresh food and energy prices, slowed to 1.1% in December from 1.2% in November. Annual average inflation, meanwhile, was unchanged at 1.5% in December.
Author: Edward Gardner, Economist