Korea: Inflation ends year above target
December 30, 2011
In December, consumer prices rose 0.38% over the previous month, which was above the 0.10% increase recorded in November. As a result, annual inflation remained unchanged at November's 4.2%, overshooting market expectations of 4.0%. Annual inflation ended the year above the Central Bank's target range of 3.0% 1.0 percentage points. The core inflation index, which excludes more volatile items such as fresh food and energy, also rose 0.38% over the previous month, which was above the 0.29% increase observed in November. Annual core inflation inched up from 3.5% in November to 3.6% in December. According to the Economic Outlook for 2012 released on 9 December, the Central Bank sees inflation ending 2012 at 3.3%, down from a previously forecasted 3.4%.