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CPI Above Target For Fifth Month

SOUTH KOREA

CPI rose faster than expected, the Y/Y August print coming in at 2.6%, in line with the July figure but faster than the 2.4% expected. The core Y/Y print came in at 1.8% against 1.6% expected and 1.7% last time out. The annual reading puts inflation over the BoK's 2% target for the fifth straight month, the BoK expected 2.1% inflation for 2021. The increase was attributed to high prices of farm and oil products.

  • Final Q2 GDP was also slightly faster than expected at 6.0% Y/Y, while the Q/Q print rose 0.8%, both 0.1ppt faster than the preliminary readings. The rise was driven by a robust recovery of exports and the service sector.

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