South Korea's September Data Suggest Easing Underlying Price Pressures

Dow Jones
1 hour ago

0331 GMT - South Korea's September inflation data could be seen as a sign that the Bank of Korea's recently tight monetary policy is beginning to ease underlying price pressures, says John Bromhead at Moody's Analytics. With core inflation slowing to 2.8% from 3.4% the previous month, the economist notes that agricultural prices eased as supply improved around the Chuseok holiday season, while services inflation also lost some momentum. "Overall, inflation appears to be becoming less broad-based, although elevated energy costs remain a persistent source of pressure for households and businesses," he says. Though further rate increases by the BOK are unlikely to ease inflation driven by energy and transport prices, strong September trade data could give the central bank enough room to consider another hike in November, he adds.

 

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