South Korea’s September Inflation Eased, but Price Pressure Persisted

South Korea’s annual inflation rate eased to 2.9% in September, but the Bank of Korea judged that price pressure had intensified beneath the headline figure. The distinction matters: a lower annual rate does not mean prices fell, or that inflation is firmly receding.

Prices kept rising

The official consumer price data show that prices rose 0.3% from August. The index excluding food and energy was up 2.8% from a year earlier, while the living-cost index rose 2.5%.

Those measures give a more detailed picture than the headline rate alone. They also help explain why the central bank viewed September’s slower annual reading with caution.

October remains a concern

The Bank of Korea expects inflation to remain high in October, according to its assessment reported on Friday. That is a forecast, not an October reading. September’s data show a slower annual increase alongside continued monthly price growth, leaving the next release to show whether the easing in the headline rate lasts.

By the Numbers