Inflation slows in South Korea

According to the statement made by the South Korean Statistics Bureau, consumer prices increased by 4.8 percent in February compared to the same month last year. Inflation, which increased above expectations in the first month of 2023 in South Korea, slowed down in the second month. According to the statement made by the South Korean Statistics Bureau, consumer prices increased by 4.8 percent in February compared to the same month last year. Market expectations were that inflation, which was 5.2 percent the previous month, would decline to 5.0 percent. The inflation level is still well above the 2.0 percent target of the Central Bank of South Korea (BoK). The South Korean Central Bank (BoK) increased interest rates by a total of 325 basis points in the increase process it started in August 2021 to combat inflation. The BoK paused the interest rate hike process at its meeting last month. Consumer prices increased by 0.3 percent on a monthly basis, above market estimates. Market expectations were that inflation would increase by 0.4 percent on a monthly basis. Core inflation in the country increased by 0.3 percent monthly and 4.0 percent annually.