Korea Inflation January 2019


Korea: Inflation moderates to a one-year low in January

February 1, 2019

Consumer prices decreased 0.1% month-on-month in January, less than the 0.3% drop in December. In January, lower prices came on the back of cheaper housing, water, electricity, gas and other fuels; transport; and food and non-alcoholic beverages. Higher prices for recreation and culture, health, education, and restaurants and hotels moderated the price fall, however. All told, this was only the second time on record since 1965 that prices have fallen in January, as they normally rise on the back of public and private service price rises at the start of the year.

Inflation moderated to 0.8% in January to 1.3% in December, falling further below the Bank of Korea’s 2.0% target and hitting a one-year low. Core inflation, which excludes fresh food and energy prices, slowed to 1.0% in January from 1.1% in December. Annual average inflation, meanwhile, was unchanged at 1.5% in January.

FocusEconomics Consensus Forecast panelists expect inflation to average 1.7% in 2019, which is down 0.1 percentage points from last month’s forecast. In 2020, the panel expects inflation to also average 1.7%.

Author:, Economist

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Korea Inflation Chart

Korea Inflation January 2019

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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