Korea: Inflation picks up in April
May 2, 2018
Consumer prices increased 0.1% in April from the previous month, according to the National Statistics Office of Korea. The result, which contrasted the 0.1% month-on-month decrease in March, reflected higher prices for food and non-alcoholic beverages, recreation and culture, and restaurant and hotels. Market analysts were expecting a 0.2% increase in April.
Inflation hit 1.6% in April, matching market analyst expectations and picking up from March’s 1.3%. January’s minimum wage hike and higher international oil prices were, to an extent, responsible for accelerating inflation in April, which is now closer to the Bank of Korea’s 2.0% target. The core inflation rate, which excludes fresh food and energy prices, remained at March’s 1.4% in April. Annual average inflation, meanwhile, remained steady at 1.7% in April.
Korea Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2018, which is unchanged from last month’s forecast. In 2019, the panel expects inflation to average 2.0%.
Author: Edward Gardner, Economist