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Inflation Data Due Feb 2

KRW
Goldman Sachs on South Korea CPI (Feb 1 2300GMT/Feb 2 0700HKT):
  • "We expect Korea's headline CPI inflation to moderate slightly to 0.4% year-on-year in January (vs. Bloomberg consensus: 0.5%) from 0.5% in the previous month. The slowdown is due mostly to a higher base from a year ago in 2020, as we expect the sequential momentum to accelerate in January, driven by higher oil and food prices. A revision to the electricity tariff plan (applied starting January, which now allow for regular updates to electricity tariffs based on changes to commodities prices) would translate to slightly lower tariffs for an average household for Q1 2021 according to the Ministry of Trade, Industry and Energy, but the impact on headline inflation will likely be negligible given its weight of 1.7% in CPI basket."

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