Korea: Inflation remains stable in June
July 3, 2018
According to the National Statistics Office of Korea, consumer prices fell 0.2% over the previous month in June, contrasting the 0.1% increase logged in May. The decrease was primarily driven by lower prices for food and non-alcoholic beverages and recreation and culture. The dip was partially offset by higher prices for transport and healthcare and health products.
Inflation was stable at 1.5% in June, rising by the same margin as in May and undershooting market analyst expectations of 1.7%. Consequently, inflation remained below the Bank of Korea’s 2.0% target. Core inflation, which excludes fresh food and energy prices, ticked down to 1.2% in June from 1.3% in May. Annual average inflation, meanwhile, remained steady for the fourth consecutive month at 1.7% in June.
Author: Lindsey Ice, Economist