Korea: Inflation moderates in July
July 31, 2014
In July, consumer prices added 0.15% over the previous month, which contrasted the 0.13% decrease observed in June. The monthly increase reflected higher prices for food and non-alcoholic beverages as well as for recreation and culture.
Annual headline inflation inched down from 1.7% in June to 1.6% in July, which undershot the 1.7% the market had expected. The annual reading is still below the Central Bank’s target range of between 2.5% and 3.5%. Meanwhile, annual average inflation stabilized at June’s 1.3% in July.
Core consumer prices, which exclude fresh food and energy prices, rose 0.20% over the previous month, which came in above the 0.08% increase registered in June. Annual core inflation remained stable in July at June’s 2.2%.
Author: Ricardo Aceves, Senior Economist