Inflation in Korea
Korea - Inflation (end of period)
Inflation eases in February
Consumer prices were flat over the prior month in February, following January’s 0.6% increase. Higher prices for housing and utilities were offset by lower prices for food and non-alcoholic beverages in February.
Inflation ticked down to 1.1% in February from 1.5% in January, remaining below the Bank of Korea’s 2.0% target rate. Core inflation—which excludes fresh food and energy prices—edged down to 0.5% in February from 0.8% in January. Annual average inflation, however, ticked up to 0.5% in February from 0.4% the month prior.
Looking ahead, inflationary pressures should perk up this year as lower interest rates—particularly ultra-low mortgage rates—support household spending and credit demand. Meanwhile, strong government spending should also support wage growth and job creation, further fueling inflation. That being said, relatively tepid economic growth, elevated household debt and a subdued housing market will likely keep inflationary pressures comfortably below the Bank of Korea’s 2.0% target rate.
FocusEconomics panelists forecast inflation will average 1.1% in 2020, which is unchanged from last month’s forecast, and 1.4% in 2021.
Korea - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||0.8||1.1||1.3||1.4||1.3|
5 years of economic forecasts for more than 30 economic indicators.
Korea Inflation (eop) 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|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
June 2, 2020
According to a second GDP release from the Bank of Korea, the economy contracted 1.3% in quarter-on-quarter seasonally-adjusted (qoqsa) terms in the first quarter, contrasting the 1.3% expansion in the final quarter of last year and slightly softer than the first estimate of a 1.4% decline.
June 1, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) ticked down to 41.3 in May from 41.6 in April, moving slightly further below the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month. May’s print was driven by the second sharpest fall in output since January 2009 easing a notch from April, due to weak demand, particularly from abroad.
June 1, 2020
Merchandise exports plunged 23.7% year-on-year in May, less steep than the 24.4% drop recorded in April, totaling USD 34.9 billion in May (April: USD 36.6 billion).
May 29, 2020
Industrial production fell 4.5% year-on-year in April (March: +7.4% yoy).
May 29, 2020
The Bank of Korea’s forward-looking business confidence indicator for manufacturers decreased to 49 in June from 50 in May, marking the lowest result since February 2009.