Inflation rises in September from August

Latest reading: Consumer prices rose 2.1% on a year-on-year basis in September, following a 1.7% rise in the prior month. The result was slightly above the Central Bank’s 2.0% target and market expectations. Relative to the previous month's figures, price pressures in September were higher for transportation (+1.2% yoy vs +0.1% in August). In contrast, there were milder price pressures for housing and utilities (+1.2% vs +1.3% in August), food and non-alcoholic beverages (+3.3% vs +4.9% in August) plus recreation and culture (+0.7% vs +0.9% in August). Meanwhile, core consumer prices were up 2.0% on a year-on-year basis in September, following a 1.3% rise in the prior month. Finally, consumer prices rose 0.52% in September in month-on-month terms, following a 0.06% decline in the prior month.

Panelist insight: Commenting on the outlook, Nomura’s analysts stated: “Amid higher supply-side price pressures and sticky service price inflation, we expect inflation to remain around the BOK’s 2% target. We maintain our 2025 inflation forecast.”

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