South Korea's annual consumer inflation slowed to 2.9% in September from 3.1% in August, official data showed on Friday, as government price-control measures and falling farm costs helped bring headline inflation back into the 2%-range — exactly in line with economists' expectations.
What the data showed
The Consumer Price Index rose 2.9% in September from a year earlier, according to the Ministry of Data and Statistics, matching the 2.9% median forecast in a Reuters poll of economists. On a monthly basis, consumer prices edged up 0.3%, a touch faster than the 0.2% gain in August.
The finance ministry attributed the deceleration to active policy measures, including price caps imposed on domestic petroleum prices. Agricultural, livestock and fisheries prices fell year-on-year for a second consecutive month — down 0.3% — supported by targeted government measures ahead of the Chuseok holiday, the ministry said in a statement.
Import-driven costs still running hot
Upward pressure remained across import-related costs. Industrial product prices rose 4.2% from a year earlier, driven largely by petroleum products, which jumped 11.8%; diesel prices surged 20%. Transport costs rose 7.7%, while prices at restaurants and hotels increased 2.8%.
Core inflation, which excludes volatile food and energy prices, softened to 2.8%, but headline inflation remains above the Bank of Korea's 2% target — leaving policymakers with another dataset to weigh at this month's meeting as they balance further tightening against the lagged effects of back-to-back rate hikes in July and August.
Sources: South Korea September inflation eases to 2.9% y/y, matches forecast (Reuters) | South Korea's September inflation eases to 2.9% y/y, matches forecast (The Business Times)
What the data showed
The Consumer Price Index rose 2.9% in September from a year earlier, according to the Ministry of Data and Statistics, matching the 2.9% median forecast in a Reuters poll of economists. On a monthly basis, consumer prices edged up 0.3%, a touch faster than the 0.2% gain in August.
The finance ministry attributed the deceleration to active policy measures, including price caps imposed on domestic petroleum prices. Agricultural, livestock and fisheries prices fell year-on-year for a second consecutive month — down 0.3% — supported by targeted government measures ahead of the Chuseok holiday, the ministry said in a statement.
Import-driven costs still running hot
Upward pressure remained across import-related costs. Industrial product prices rose 4.2% from a year earlier, driven largely by petroleum products, which jumped 11.8%; diesel prices surged 20%. Transport costs rose 7.7%, while prices at restaurants and hotels increased 2.8%.
Core inflation, which excludes volatile food and energy prices, softened to 2.8%, but headline inflation remains above the Bank of Korea's 2% target — leaving policymakers with another dataset to weigh at this month's meeting as they balance further tightening against the lagged effects of back-to-back rate hikes in July and August.
Sources: South Korea September inflation eases to 2.9% y/y, matches forecast (Reuters) | South Korea's September inflation eases to 2.9% y/y, matches forecast (The Business Times)
