Korea: Inflation remains steady in May
June 1, 2012
In May, consumer prices rose 0.19% over the previous month, up from the flat reading recorded in April. Annual inflation, however, remained unchanged at April's 2.5%, in line with market expectations and marking the lowest level since July 2010. The core inflation index, which excludes more volatile items such as fresh food and energy, also added 0.19% over the previous month, which was above the 0.10% increase observed in April. Annual core inflation, however, fell from 1.8% in April to 1.6% in May, the lowest level since November 2010. The Central Bank sees inflation at 3.2% this year. For 2013, the Bank expects inflation to moderate to 3.1%.