SEOUL (Reuters) – South Korea’s shopper inflation slowed in August to the weakest in almost 3-1/2 years, official knowledge confirmed on Tuesday, supporting market expectations for an imminent easing of financial coverage.
The patron value index rose 2.0% from a yr earlier, after rising 2.6% the earlier month, marking the slowest annual rise since March 2021.
It matched the median 2.0% improve tipped in a Reuters survey of economists and the central financial institution’s medium-term inflation goal of two%.
On a month-to-month foundation, the index was up 0.4%, the quickest in six months, after rising 0.3% within the prior month and beating forecast by economists for 0.3%.
Final month, the Financial institution of Korea held rates of interest regular at their highest in almost 16 years however revived expectations for a coverage easing that some economists see taking place as quickly as October as development issues overshadow inflation worries.
Core CPI, excluding risky meals and vitality objects, rose 2.1% from a yr earlier, slowing from the earlier month’s 2.2% rise and marking the weakest since November 2021.
