Korea: Inflation declines to lowest level since January 2021 in October
Latest reading: Inflation ticked down to 1.3% in October from September’s 1.6%. October’s result marked the lowest inflation rate since January 2021, was below market expectations, and moved further below the Central Bank’s 2.0% inflation target. The moderation was broad-based, with lower price pressures recorded for housing and utilities, transportation, food and non-alcoholic beverages, and recreation and culture.
Annual average inflation ticked down to 2.6% in October (September: 2.8%). Meanwhile, core inflation edged down to 1.8% in October from September’s 2.0%.
Lastly, consumer prices rose 0.03% over the previous month in October, which was below the 0.10% increase recorded in September. October’s result marked the weakest reading since June.
Outlook: Inflation has now trended down for the third straight month and is set to remain moderate ahead. This bodes well for the Central Bank continuing its easing cycle—if not at the late-November meeting then in early 2025.