Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

South Korean Inflation Slows For First Time in Six Months

Published 07/01/2021, 07:00 PM
Updated 07/01/2021, 07:18 PM
© Bloomberg. Shoppers wearing protective masks walk through the Hongdae shopping district in Seoul, South Korea, on Saturday, May 22, 2021. South Korea is scheduled to release consumer confidence figures on May 25.

© Bloomberg. Shoppers wearing protective masks walk through the Hongdae shopping district in Seoul, South Korea, on Saturday, May 22, 2021. South Korea is scheduled to release consumer confidence figures on May 25.

(Bloomberg) -- The pace of South Korean inflation slowed for the first time in six months, according to data that supports the central bank’s view of recent price pressures as temporary.

Consumer prices rose 2.4% from a year earlier, slowing from a 2.6% pace in May, data from the statistics office showed Friday. Economists had expected the pace would decelerate only to 2.5%.

The slowdown adds support to the Bank of Korea’s argument that recent price data have been boosted by comparison with last year’s dismal figures and some inflationary pressures are likely to fade going forward. The central bank sees inflation fluctuating around its 2% target for the rest of the year before sliding lower in 2022.

Inflation may get a boost from a 33 trillion won extra budget proposed by the government this week to provide cash handouts to 80% of South Korean households. If the stimulus package passes, it would be among the largest since the pandemic hit last year.

Vaccinations have also been accelerating even though they have yet to reach the majority of the population. The latest threat to consumer activity has been the Delta variant of the coronavirus, which prompted authorities to delay plans to ease social distancing rules in Seoul from this week.

©2021 Bloomberg L.P.

© Bloomberg. Shoppers wearing protective masks walk through the Hongdae shopping district in Seoul, South Korea, on Saturday, May 22, 2021. South Korea is scheduled to release consumer confidence figures on May 25.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.