2 Oct 2015
Korea: Inflation slows in September - ING
FXStreet (Delhi) – Tim Condon, Chief Economist at ING, notes that the Korean CPI inflation slowed to 0.6% YoY in September from 0.7% in August (consensus 0.8%).
Key Quotes
“We consider our 0.5% full-year inflation forecast subject to upside risk (year-todate 0.6%, BOK 0.9%, Bloomberg consensus 0.8%). Supply factors contributed via the food and transport components.”
“The seasonal clawback of the Chusok-related bounce in the household furnishings component was the largest in three years, which we consider evidence of muted inflation expectations.”
“Core inflation was unchanged in September at August’s 2.1%. However, at 2.1% YTD it was up from 2.0% in 2014, which looks consistent with survey-based expected inflation being stuck at 2.5% since March. We infer from the stable core inflation that when the disinflationary effect of falling commodity prices on headline CPI fades it will rise to converge core inflation.”
Key Quotes
“We consider our 0.5% full-year inflation forecast subject to upside risk (year-todate 0.6%, BOK 0.9%, Bloomberg consensus 0.8%). Supply factors contributed via the food and transport components.”
“The seasonal clawback of the Chusok-related bounce in the household furnishings component was the largest in three years, which we consider evidence of muted inflation expectations.”
“Core inflation was unchanged in September at August’s 2.1%. However, at 2.1% YTD it was up from 2.0% in 2014, which looks consistent with survey-based expected inflation being stuck at 2.5% since March. We infer from the stable core inflation that when the disinflationary effect of falling commodity prices on headline CPI fades it will rise to converge core inflation.”