South Korea Inflation Returns to 2% in January, Lowest in Five Months

Overview

• Headline consumer prices rose 2.0% year over year in January after 2.3% in December, the slowest pace since August.
• Core inflation was unchanged from the prior month at 2.0% year over year, according to official data.
• Prices increased 0.4% on a monthly basis, roughly in line with economists’ expectations.
• Petroleum product prices fell 2.5% while agricultural prices rose 1.5%, driving mixed moves across categories.
• The Bank of Korea kept rates on hold and signaled an end to its easing cycle as the won weakened 0.8% this year to 1,451.5 per dollar.