Korea Inflation

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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%.

The Central Bank sees annual average inflation at 2.1% in 2014, and expect it to rise to 2.8% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2014, which is unchanged from last month’s forecast. In 2015, the panel expects average inflation to reach 2.6%


Author:, Senior Economist

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Korea Inflation Chart


Korea Inflation July 2014

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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