Korea: Inflation starts 2017 with a strong increase
February 2, 2017
Consumer prices jumped up 0.9% from the previous month in January, well above the 0.1% rise in December. The result was mainly driven by higher prices for housing, water, electricity, gas and other fuels.
Inflation climbed from 1.3% in December to 2.0% in January, which marks the highest level since October 2012. The result matched the Central Bank’s inflation target of 2.0%. Annual average inflation edged up from 1.0% in December to 1.1% in January. Meanwhile, core inflation, which excludes fresh food and energy prices, rose from 1.2% in December to 1.5%.
The low base of comparison in 2016, when subdued global energy prices kept inflation low, will continue to support an upward trend in the coming months.
Author: Ricardo Aceves, Senior Economist