Home > Economy > South Korea's Inflation Up 1.9 Percent In February From A Year Ago
Economy

South Korea's Inflation Up 1.9 Percent In February From A Year Ago

By March 4, 2017 at 4:08 am
Prices of farm products picked up 4.3 percent on-year in February, while those of fresh produce, like fruits and vegetables, jumped 4.8 percent. (Photo : Getty Images)

South Korea's consumer prices jumped in February from the previous year, and it slightly rose from the previous month, according to government data released Friday, giving the Bank of Korea some room to cut rates if needed amid economic uncertainties.

The consumer price index (CPI) edged up 1.9 percent in February from a year ago, slower compared to January's 2 percent on-year increase, according to the data compiled by Statistics Korea. The CPI slightly picked up by 0.3 percent on-month in February, compared to a 0.9 percent gain in January, according to a report by Yonhap News Agency.

Reuters forecast February year-on-year inflation to be at 1.6 percent and month-on-month inflation at 0.1 percent.

In a research note by ANZ Bank, analysts expected the headline inflation to moderately increase but core inflation would likely be subdued as demand-pull pressures were largely muted, according to a Reuters report.

Core inflation, which excludes the more volatile food and oil prices, gained 1.7 percent in February from the same period last year.

Although inflation hit the Bank of Korea's target of 2 percent in January, the central bank has said it doesn't expect inflation to rise sharply from that level as the rebound in consumption remains soft, the Reuters report said.

Statistics Korea said rising oil prices led to an uptrend in inflation, which had remained below the 1 percent level for 17 out of the last 24 months. South Korea's CPI rose 0.7 percent in 2015 and 1 percent in 2016 amid low crude oil prices, the Yonhap News Agency report said.

Last month, prices of gasoline and other related products advanced 13.3 percent from the previous year, marking the sharpest one-year rise since the 16 percent gain in November 2011.

Prices of farm products picked up 4.3 percent on-year in February. Prices of fresh produce, like fruits and vegetables, jumped 4.8 percent on-year, dropping below the double-digit on-year gain for the first time after five months.

The inflation for culture and entertainment spending came at 1.1 percent on-year in February, the slowest pace since April last year. Education inflation also slowed down to 1.3 percent, the softest gain since February 2014. 

Like Us on Facebook