Inflation growth in South Korea stopped in December
2022.12.29 23:53
Inflation growth in South Korea stopped in December
Budrigannews.com – According to official data released on Friday, consumer prices in South Korea increased by 5.0% in December compared to the previous year, which was in line with market expectations and the rate seen in November.
The shopper cost file (CPI) was 0.2% higher than in November, when it showed a 0.1% month to month decline, as per Measurements Korea information. In a Reuters poll, the median forecast was for the CPI to rise by 1% over the month and 5.0% over the previous year.
According to a breakdown of the data, agricultural product prices were 1.6% lower than in December 2021. However, the annual rate of inflation remained high as utility prices increased 23.2 percent and private service prices increased 6.0%. In July, the annual rate reached a high of 6.3%.
According to statements made by the government and the central bank, there is a great deal of uncertainty regarding the path that inflation will take in the near future.
The Bank of Korea issued a statement following the publication of the data, stating that it anticipated annual inflation of around 5% through early 2023, with both upside and downside risks.
Separately, the finance ministry declared that it would continue its efforts to stabilize prices, citing price adjustments at the start of the new year and increased demand during the Lunar New Year holidays as potential threats.
Since August 2021, the Bank of Korea has increased its policy interest rate by 275 basis points, and it is widely anticipated that it will only make one more increase during the current cycle, in early 2023.
The center CPI, which rejects unpredictable food and energy costs, was up 4.1% in December on a year sooner, after November’s yearly ascent of 4.3%, the quickest in almost 14 years. The core annual rate decreased in December for the first time since November 2021.
More Retail sales in Spain declined in November
From the 2% increase in 2021, the CPI’s average level for the entire year 2022 was 5.1% higher than the previous year. Since 1998, no annual average inflation rate has been higher.
