CPI Expected To Moderate Y/Y In August

Goldman Sachs says: "We expect Korea's headline CPI inflation to moderate to 2.3% yoy in August (vs. Bloomberg consensus: 2.2), from 2.6% in July, due mostly to high base effects. Our forecast implies a 0.2% mom sa increase for headline CPI on the back of continued increases in food and oil prices in high frequency data although the momentum would be moderating from the previous month. We also expect 0.1% increase in core CPI, slowing from July."

• As a note last week the BoK upgraded its inflation outlook, the Central Bank said it expects inflation to average 2.1%, faster than its earlier estimate of 1.8% for 2021.
• Final Q2 GDP data is also released, the print is expected to confirm Y/Y growth of 5.9% and Q/Q growth of 0.7%. The BoK kept its growth forecast unchanged at 4% at last week's rate announcement citing an expected improvement in consumption along with rising vaccinations and an extra budget, while exports and investment are expected to remain strong.