Korea: Inflation rises to 19-month high in May
June 3, 2014
In May, consumer prices added 0.17% over the previous month. The print came in above the 0.06% increase observed in April and mainly reflected higher prices for furnishing, household equipment and housing maintenance as well as for recreation and culture.
Annual inflation rose from 1.5% in April to 1.7% in May. The reading overshot the 1.6% rise the market had expected and constituted the highest level since October 2012. The annual reading is still below the Central Bank’s target range of between 2.5% and 3.5%. Meanwhile, annual average inflation ticked up from 1.2% in April to 1.3% in May.
Core consumer prices, which exclude fresh food and energy prices, rose 0.26% over the previous month, which was up from the 0.18% increase recorded in April. Annual core inflation inched down from 2.3% in April to 2.2% in May.
Author: Ricardo Aceves, Senior Economist