Korea Inflation


Korea: Inflation on the rise but still well below target

July 1, 2015

In June, consumer prices were unchanged over the previous month, which was down from the 0.3% rise tallied in May. June’s print reflected that higher prices for transport were offset by lower prices in several categories. Prices for food and non-alcoholic beverages as well as for clothing and footwear were unchanged in June, compared to the previous month.

Annual headline inflation inched up from 0.5% in May to 0.7% in June, which was in line with market expectations. June’s print marks the third straight pick-up in inflation after a long string of declines. However, inflation remains well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation was steady at May’s 0.9% in June.

Core consumer prices, which exclude fresh food and energy prices, were unchanged in June over the previous month, which was down from the 0.3% tallied in May. Regarding annual figures, core inflation decreased from 2.1% in May to 2.0% in June.

The Central Bank expects annual average inflation of 0.9% in 2015 and 2.2% in 2016. FocusEconomics Consensus Forecast panelists expect inflation to average 1.1% in 2015, which is down 0.2 percentage points from last month’s forecast. In 2016, the panel expects average inflation to reach 2.0%.

Author:, Economist

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Korea Inflation Chart

Korea Inflation June 2015

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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