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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH KOREA
South Korean October inflation figures were stronger than expected. Headline m/m rising 0.3% (forecast 0.2%, 0.6% prior). Headline rose to 3.8% in y/y terms (3.6% forecast, 3.7% prior). Core inflation ex food and energy rose 3.2% y/y (forecast 3.1%, prior 3.3%).
- Headline pressures are comfortably off the July trough (2.3% y/y). The core measure edged down to 3.2% but is moving lower at a gradual rather than dramatic pace. The chart below overlays headline y/y versus core. The Oct uptick is also consistent with some recovery in inflation expectations for households.
- In terms of the detail, most of the m/m gain was in transport, +1.3% m/m. Clothing rose 0.5%, furnishings rose 0.4%.
- In y/y terms, we had 7 out of 12 sub categories record either the same y/y pace or firmer relative to September. Food +6.7% y/y, clothing at 8.1%y/y, were the strongest performers.
- Whilst base effects for headline CPI improve modestly in Nov/Dec, the authorities are likely to stay vigilant in terms of inflation risks. South FinMin Choo noted prior to today's data that inflation pressures were coming down at a slower pace than expected.
Fig 1: South Korea Headline & Core CPI Y/Y
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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