SEOUL (Reuters) -South Korea’s client inflation slowed in August to the weakest in practically 3-1/2 years, official knowledge confirmed on Tuesday, supporting market expectations for an imminent easing of financial coverage.
The buyer value index rose 2.0% from a yr earlier, after rising 2.6% the earlier month, marking the slowest annual rise since March 2021.
It matched the median 2.0% enhance tipped in a Reuters survey of economists and the central financial institution’s medium-term inflation goal of two%.
On a month-to-month foundation, the index was up 0.4%, the quickest in six months, after rising 0.3% within the prior month and beating forecast by economists for 0.3%.
“Going forward, unless there is any additional shock from weather conditions or global oil prices, consumer inflation is expected to stabilise in the lower 2% range,” mentioned Vice Finance Minister Kim Beom-seok.
Final month, the Financial institution of Korea held rates of interest regular at their highest in practically 16 years however revived expectations for a coverage easing that some economists see taking place as quickly as October as progress considerations overshadow inflation worries.
Core CPI, excluding unstable meals and power gadgets, rose 2.1% from a yr earlier, slowing from the earlier month’s 2.2% rise and marking the weakest since November 2021.
