South Korea consumer inflation cools to 21-month low

SOUTH Korea’s consumer inflation slowed for a fifth consecutive month in June to the weakest level in 21 months, official data showed on Tuesday (Jul 4).

The consumer price index rose 2.7 per cent in June from a year earlier, compared with an increase of 3.3 per cent in May and a median forecast of 2.85 per cent in a Reuters survey of economists.

It marked the weakest annual increase since September 2021, according to Statistics Korea.

Core inflation, which excludes volatile food and energy prices, slowed to 3.5 per cent from 3.9 per cent a month before, marking the slowest annual rise since May, 2022.

The headline index was flat on a monthly basis, compared with a 0.3 per cent rise in the previous month and a 0.2 per cent increase expected by economists.

South Korea’s central bank has been on hold since its last interest rate hike in January and its tightening campaign is widely expected to be over. The bank next meets on Jul 13. REUTERS