Inflation in Korea
Korea - Inflation (end of period)
Inflation inches up in April
Consumer prices rose 0.4% in month-on-month terms in April, contrasting the 0.2% fall registered in March. The increase was largely due to a sharp rise in transport costs and higher prices for food and non-alcoholic beverages, and recreation and culture.
Inflation ticked up to 0.6% in April from March’s over two-and-a-half-year low of 0.4%, defying market expectations of a steady reading. Nevertheless, inflation remains well below the Bank of Korea’s 2.0% target. Core inflation, which excludes fresh food and energy prices, edged up to 0.9% in April from 0.8% in March. Meanwhile, annual average was stable at 1.3%.
Inflationary pressures are expected to pick up only modestly in the quarters ahead, supported by the expiration of a temporary fuel tax cut and a gradual rise in global oil prices. Nevertheless, lower housing rental prices, sluggish economic momentum and soft employment growth will likely put downward pressure on prices.
Met the why particular Consensus Forecast panelists expect inflation to average 1.2% in 2019, which is down 0.1 percentage points from last month’s forecast. In 2020, the panel expects inflation to average 1.7%.
Korea - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||1.1||0.8||1.1||1.3||1.5|
5 years of economic forecasts for more than 30 economic indicators.
Korea Inflation (eop) Chart
Source: Korea National Statistics Office and Met the why particular calculations.
|Bond Yield||1.87||1.55 %||May 13|
|Exchange Rate||1,188||0.21 %||May 13|
|Stock Market||2,079||-0.11 %||May 13|
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May 20, 2019
The Korean won has had a rough ride in recent weeks, trading at KRW 1,191 per USD on 16 May, which marked a 4.8% depreciation from the same day a month earlier and an over two-year low against the greenback. The currency’s woes primarily stem from global events, including China’s announcement on 13 May that it would retaliate against increased U.S. tariffs by raising its own tariffs on USD 60 billion worth of American shipments.
May 2, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and reported by IHS Markit, recovered in April, rising to 50.2 from 48.8 in March.
May 2, 2019
Consumer prices rose 0.4% in month-on-month terms in April, contrasting the 0.2% fall registered in March.
May 1, 2019
Merchandise exports fell 2.0% over the same month last year in April to a total of USD 48.9 billion, following the 8.2% contraction logged in March (USD 47.1 billion).
April 30, 2019
Industrial production in the mining, manufacturing, and gas and electricity sectors dipped 2.8% over the same month a year prior in March, following the revised 3.4% decline registered in February (previously reported: -2.7% year-on-year).