South Korea inflation slows to 3-1/2-year low, hits central bank target
2024.09.02 19:30
SEOUL (Reuters) – South Korea’s consumer inflation slowed in August to the weakest in nearly 3-1/2 years, official data showed on Tuesday, supporting market expectations for an imminent easing of monetary policy.
The consumer price index rose 2.0% from a year earlier, after rising 2.6% the previous month, marking the slowest annual rise since March 2021.
It matched the median 2.0% increase tipped in a Reuters survey of economists and the central bank’s medium-term inflation target of 2%.
On a monthly basis, the index was up 0.4%, the fastest in six months, after rising 0.3% in the prior month and beating forecast by economists for 0.3%.
Last month, the Bank of Korea held interest rates steady at their highest in nearly 16 years but revived expectations for a policy easing that some economists see happening as soon as October as growth concerns overshadow inflation worries.
Core CPI, excluding volatile food and energy items, rose 2.1% from a year earlier, slowing from the previous month’s 2.2% rise and marking the weakest since November 2021.
