South Korea February CPI came in a touch below market estimates. The headline m/m printed at 0.3%, versus 0.4% expected (prior was 0.8%). This took headline down to 4.8% in y/y terms, versus 5.0% expected and 5.2% in Jan. Core CPI pressures also moderated to 4.8% y/y (from 5.0%).

• Looking at the detail, 8 out of 12 sub-categories saw y/y inflation print either at January's pace or weaker. Firmer inflation pressures were evident in mainly domestically focused sectors like furnishings, health and recreation.
• The move is likely to be welcomed by the authorities and comes despite a recent uptick in consumer inflation expectations. The Finance Minister stated, post the release, that pressures are expected to ease further as we progress into 2023.
• Further signs of easing inflation pressures should take pressure of the BoK to raise rates further, all else equal. Note the central bank next meets in April.