Korea: Inflation stabilizes in June
June 30, 2014
In June, consumer prices fell 0.13% over the previous month. The result contrasted the 0.17% rise tallied in May and mainly reflected that lower prices for food and non-alcoholic beverages, furnishing, household equipment and maintenance more than offset higher clothing and footwear prices.
In June, annual headline inflation held steady at May’s 1.7%, undershooting the 1.9% the markets had expected. The annual reading is still below the Central Bank’s target range of between 2.5% and 3.5%. Meanwhile, annual average inflation stabilized at May’s 1.3% in June.
Core consumer prices, which exclude fresh food and energy prices, added a mild 0.08% over the previous month, which came in below the 0.26% increase registered in May. Annual core inflation remained stable at May’s 2.2% in June.
Author: Ricardo Aceves, Senior Economist