South Korea’s Annual Inflation Accelerated in December

Annual inflation in South Korea accelerated in December to the fastest level in three months. Official data showed that the consumer price index rose by 1.5% in December compared to the previous year, in line with expectations. Over the month, inflation increased by 0.3%. Inflation for the entire 2017 in South Korea was 1.9%.

The increase in inflation was supported by the fact that the growth of world oil prices led to a decrease in the cost of petrochemical and other industrial products. Oil prices jumped by 7.5% in December compared with the previous year. But still, inflation remained below the target level of the Central Bank of Korea, which expects further growth of the CPI, as oil prices rise and the world economy recovers.