CPI Above BoK Target For Sixth Month

Won is flat, USD/KRW last trading at 1188.25 but off session lows seen at the open. The pair is still below yesterday's high at 1188.90 which was just shy of the high of 2021 so far.

• Data earlier showed CPI rose 2.5% Y/Y in September, slightly higher than consensus 2.4%, while core CPI rose 1.9% also 0.1ppts above estimates. Prices rose 0.5% M/M. The annual reading has now been above the BoK's 2% target for six straight months. As a reminder the BoK raised its 2021 inflation outlook to 2.1% from its earlier estimate of 1.8%. The rise was attributed to high prices of farm and oil products
• On the coronavirus front there were 2,028 new infections in the past 24 hours, back above the 2,000 mark. Health authorities remain on alert over another surge in new cases after a long weekend that ended on Oct. 4. For another two weeks from Monday, South Korea extended the toughest social distancing rules in the greater Seoul area
• Elsewhere, South Korea's trade ministry has expressed concerns over Washington's latest request to local chipmakers to share information on their supply chains amid growing concerns over the leak of major trade secrets.
• Meanwhile, lawmakers are scheduled to hold the annual parliamentary audit of the Joint Chiefs of Staff today, just a day after the planned session for the defense ministry was disrupted due to a partisan strife over a snowballing land development corruption scandal potentially involving the ruling party's presumptive nominee to run for next year's presidential election.
• The BoK's newest member Park Ki Young made a statement earlier, he said the Central Bank should look into coordinating monetary and fiscal policy but still maintain independence and mentioned overheating asset markets.