Free Trial
JGBS

BoE To Provide BoJ With Some Breathing Room

US TSY FUTURES

TYZ2 Given

ASIA

Xi To Attend APEC Summit, Biden Yet To Decide

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

CPI Prints Multi-Decade Highs, But Mostly In Line With Expectations ​​​

SOUTH KOREA

South Korea CPI printed close to expectations, 0.5% for MoM (versus 0.4% expected), while the YoY pace was 6.3%, in line with market expectations. The core print came in at 4.5% YoY, also in line with market forecasts.

  • Whilst headline inflation is at multi-decade highs, it is the first in line with expectations outcome since December of last year. For the first 6 months of this year the YoY prints had all come in stronger than market expectations (by an average of 0.22ppts).
  • Core momentum edged higher from 4.4% last month, but we remain below the late 2008 highs of +5.5% for now.
  • The next BoK meeting is on the 25th of August and the central bank is expected to hike again, although comments yesterday from Governor Rhee indicate a 25bps move is likely to be preferred to another 50bps hike.
  • We may have needed to see a further sharp upside surprise on inflation today to make the case for a 50bps move. The Korean authorities have stated inflation is expected to remain above 6% for a number of months.
  • Note the BoK minutes are also out today from the last policy meeting.
193 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

South Korea CPI printed close to expectations, 0.5% for MoM (versus 0.4% expected), while the YoY pace was 6.3%, in line with market expectations. The core print came in at 4.5% YoY, also in line with market forecasts.

  • Whilst headline inflation is at multi-decade highs, it is the first in line with expectations outcome since December of last year. For the first 6 months of this year the YoY prints had all come in stronger than market expectations (by an average of 0.22ppts).
  • Core momentum edged higher from 4.4% last month, but we remain below the late 2008 highs of +5.5% for now.
  • The next BoK meeting is on the 25th of August and the central bank is expected to hike again, although comments yesterday from Governor Rhee indicate a 25bps move is likely to be preferred to another 50bps hike.
  • We may have needed to see a further sharp upside surprise on inflation today to make the case for a 50bps move. The Korean authorities have stated inflation is expected to remain above 6% for a number of months.
  • Note the BoK minutes are also out today from the last policy meeting.