SEOUL: South Korea’s inflation rate slowed down to 1.9 percent in June of 2017 from 2.0 percent in the previous month, slightly below market expectations of 2.0 percent. It was the third straight month that the inflation rate remained at the central bank’s target of 2.0 percent. Prices increased at a slower pace for transport, furnishings and restaurants and hotels. On a monthly basis, consumer prices decreased by 0.1 percent (vs expectations of no change).
Prices increased at a slower pace for transport (2 percent from 4.5 percent in May), miscellaneous goods & services (2.2 percent from 2.5 percent), furnishings & household equipment (1.7 percent from 1.8 percent), restaurants & hotels (2.3 percent from 2.4 percent).
In contrast, prices accelerated for food & non-alcoholic beverages (4.6 percent from 3.4 percent in May), clothing & footwear (1.1 percent from 1 percent) and health (1.2 percent from 0.7 percent). Also, communication prices fell less (-0.1 percent from -0.3 percent).
On a monthly basis, consumer prices declined 0.1 percent after rising 0.1 percent in May.
Core inflation, which excludes volatile items such as oil and food, decreased to 1.3 percent from 1.5 percent in Mayaa.
