Investor Alert

Dow Jones Newswires Archives | Email alerts

Aug. 2, 2021, 11:00 p.m. EDT

South Korea’s inflation ramps up in July

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Kwanwoo Jun

South Korea’s consumer inflation accelerated at a faster-than-expected pace in July, remaining above the central bank’s annual 2% target for a fourth straight month.

The benchmark consumer-price index gained 2.6% from a year earlier after June’s 2.4% rise, the statistical office said Tuesday. That was above the median forecast of five economists polled by The Wall Street Journal for a 2.4% gain.

Compared with the prior month, the index edged up 0.2% in July, beating the median forecast of being flat. The latest reading followed the prior month’s 0.1% decline.

Analysts and officials at the Bank of Korea previously expected inflation to moderate gradually later in the year, as the effect of lower comparison bases seen last year would fade out.

The bank expects inflation to average 1.8% for 2021.

Core CPI, which strips out volatile energy and food prices, rose 1.2% in July from a year ago, unchanged from June’s pace. It rose 0.4% from a month ago after being flat in June.

The Bank of Korea has recently signaled it would tighten policy as the economy is recovering. It kept its base rate at a record-low 0.50% in a split vote in July, with one dissenting board member calling for a rate increase.

This Story has 0 Comments
Be the first to comment
More News In
Dow Jones Newswires

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.