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.
Author: Carl Kelly, Economist