Korea: Inflation steady in July, remains well below target
August 4, 2015
In July, consumer prices increased 0.2% over the previous month, which was up from the flat reading tallied in June. July’s print reflected that higher prices for transport more than offset a decline in prices for housing, utilities, and fuel.
Annual headline inflation in July remained at June’s 0.7%, which was in line with market expectations. June’s print marked the third straight pick-up in inflation after a long string of declines. However, with July’s unchanged result, inflation remains well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation inched down from 0.9% in June to 0.8% in July.
Core consumer prices, which exclude fresh food and energy prices, increased 0.2% in July over the previous month, which was up from the flat reading registered in June. Regarding annual figures, core inflation was unchanged at 2.0% in July.
Author: Carl Kelly, Economist