Overview

• Statistics Korea reported that consumer prices rose 2.1% year-on-year in July, marking a second consecutive month above the Bank of Korea’s 2% target.
• Core inflation excluding food and energy held steady at 2%, unchanged from June’s level.
• Persistent won weakness lifted import prices for industrial goods, with processed food costs rising 4.1% and adding 0.35 percentage point to inflation.
• The service sector posted a 2.3% year-on-year gain driven by higher utility, water, dining-out and personal service charges.
• Petroleum product prices fell 1% year-on-year, providing a modest offset to broader price pressures.