Korea’s inflation slowly grows in July

06-Aug-2020 Intellasia | MarketWatch | 6:02 AM Print This Post

South Korea’s headline inflation accelerated at a slower-than-expected pace in July, still remaining well below the central bank’s 2 percent annual target.

The benchmark consumer-price index gained 0.3 percent from a year earlier, after being flat in June, said the country’s statistical office Tuesday. The latest reading missed market expectations for a 0.4 percent increase.

The softer-than-expected July print came as pandemic-induced business lockdowns still weighed on price growth.

Compared with the prior month, the index remained flat in July, following the previous month’s 0.2 percent increase.

Core CPI, which strips out volatile energy and food prices, gained 0.4 percent from a year ago in July, faster than the prior month’s pace of 0.2 percent growth. From a month ago, it rose 0.3 percent after being flat in June.

The Bank of Korea expects inflation to average 0.3 percent this year, compared with a record low of 0.4 percent in 2019.

Inflation averaged 1.5 percent in 2018.



Category: Korea

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