Inflation slows in December from the prior month

Latest reading: Consumer prices were up 2.3% in annual terms in December, following a 2.4% increase in the previous month. December's reading matched market expectations but was above the Bank of Korea 2.0% inflation target for the fourth consecutive month. Relative to the prior month's data, there were reduced price pressures for food and non-alcoholic beverages (+3.6% on a year-on-year basis vs +4.7% in November) and recreation and culture (+1.2% vs +1.4% in November). In contrast, price pressures were higher for housing and utilities in December (+1.3% vs +1.2% in November). Finally, the variations in clothing and footwear and transportation were the same as in the prior month (+2.3% and +3.2%, respectively). Meanwhile, core consumer prices were up 2.0% on a year-on-year basis in December, stable from the previous month's reading. Finally, consumer prices rose 0.32% in December on a month-on-month basis, following a 0.19% decline in the prior month.

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