Korea Inflation

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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.

The Central Bank sees annual average inflation at 2.1% in 2014, and expect it to rise to 2.8% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2014, which is unchanged from last month’s forecast. In 2015, the panel expects average inflation to reach 2.6%


Author:, Senior Economist

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Korea Inflation Chart


Korea Inflation June 2014

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: National Statistics Office of Korea (KOSTAT)


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