Korea: Inflation slows in June to lowest level in almost three years
July 2, 2012
In June, consumer prices dropped 0.09% over the previous month, contrasting the 0.19% increase recorded in May. Annual inflation fell from 2.5% in May to 2.2% in June, down from market expectations of an unchanged 2.5% rate, and marked the lowest level since October 2009. The core inflation index, which excludes more volatile items such as fresh food and energy, added 0.29% over the previous month, which was above the 0.19% increase observed in May. Annual core inflation, however, inched down from 1.6% in May to 1.5% in June, the lowest level since March 2006. In July, the Central Bank lowered this year's inflation forecast from 3.2% to 2.7%. For 2013, the Bank now expects inflation to average 2.9%, down from the previous 3.1% rate.