South Korea’s CPI inflation lowest since July 2023

Annual consumer price inflation in South Korea has decelerated to 2.7% in May from 2.9% in April, the latest data by Statistics Korea showed.

It has been the lowest CPI inflation rate since July 2023.

In comparison, market consensus had pointed to a slower CPI easing – to 2.8%.

In May, prices increased at a slower rate for food and non-alcoholic beverages (5.1% YoY compared to 5.9% YoY in April), housing, electricity, gas and water (1.4% YoY compared to 1.8% YoY in April) and restaurants and hotels (2.9% YoY compared to 3% YoY in April).

At the same time, cost of transport picked up in May, by 3.8% YoY after a 2.9% YoY rise in April.

In monthly terms, consumer prices in the country went up 0.1% in May after stalling in April, the data showed.

The South Korean Won was 0.46% weaker on the day against the US Dollar, with the USD/KRW currency pair last trading at 1,376.84.