Inflation in Korea
Korea - Inflation
Inflation rises in October
Inflation ticked up to 5.7% in October, following September’s 5.6%. The reading was driven by higher price pressures for housing and utilities. Electricity and gas prices soared 23.0% in October after the government decided to hike prices in late September.
The trend pointed up slightly, with annual average inflation coming in at 4.9% in October (September: 4.7%). Meanwhile, core inflation ticked up to 4.2% in October, from the previous month's 4.1%.
Lastly, consumer prices rose 0.26% in October over the previous month, which was below September's 0.29% increase.
Analysts at Nomura commented on the outlook:
“Inflation peaked in July, in line with our expectations […]. That said, we expect headline inflation to remain above 5% until year-end and then slow to an average of 3.8% y-o-y in Q1 2023, led by slowing consumption and the continued fall in energy prices. We maintain our inflation forecasts of 5.1% for 2022 and 2.0% for 2023.”
Our panel forecasts inflation to average 3.0% in 2023, which is up 0.1 percentage points from last month’s forecast. In 2024, inflation is seen averaging 1.8%.
Korea - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.7||1.0||1.9||1.5||0.4|
5 years of economic forecasts for more than 30 economic indicators.
Korea Inflation Chart
Source: Korea National Statistics Office and FocusEconomics calculations.
|Bond Yield||1.68||1.55 %||Dec 31|
|Exchange Rate||1,156||0.21 %||Dec 31|
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November 23, 2022
Manufacturing firms’ month-ahead business confidence fell to 69.0 in December from November's 73.0.
November 22, 2022
Consumer confidence fell to 86.5 in November from October's 88.8, meaning the index remained below the 100-point threshold, indicating worsening pessimism among consumers.
November 2, 2022
Inflation ticked up to 5.7% in October, following September’s 5.6%.
November 1, 2022
Merchandise exports fell 5.7% in annual terms in October, on the heels of September’s 2.7% rise.
November 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 48.2 in October, up from September's 47.3.