- Korea’s October CPI YoY moderated to +1.3% with the MoM figure at 0.00%.
- Down from +1.6% in September, this was the lowest reading since 2021.
- Food prices rose +1.4%, and a modest decline in Housing/Utilities to +1.6% from +1.8%.
- The largest decline in prices was seen in Transport that slipped to -4.0% (from -1.2%).
- The Bank of Korea has an inflation target of +2.0%.
- The key piece in this data will be the modest decline in Housing/Utilities; an area of focus given house price inflation in Seoul.
- The BOK does not meet again until November 28, having cut rates at the most recent meeting.
- Today’s CPI potentially turns the next meeting into a live one.
- The market currently has c. 12bps of cuts priced in over the next three months.
- Following the conclusion of the US Election, it will be interesting to see if the market starts to forecast and price in a further cut at the next meeting.
SOUTH KOREA: CPI Moderated in October, Below Consensus.
Last updated at:Nov-04 23:11By: Jamie Grant
South Korea
- Korea’s October CPI YoY moderated to +1.3% with the MoM figure at 0.00%.
- Down from +1.6% in September, this was the lowest reading since 2021.
- Food prices rose +1.4%, and a modest decline in Housing/Utilities to +1.6% from +1.8%.
- The largest decline in prices was seen in Transport that slipped to -4.0% (from -1.2%).
- The Bank of Korea has an inflation target of +2.0%.
- The key piece in this data will be the modest decline in Housing/Utilities; an area of focus given house price inflation in Seoul.
- The BOK does not meet again until November 28, having cut rates at the most recent meeting.
- Today’s CPI potentially turns the next meeting into a live one.
- The market currently has c. 12bps of cuts priced in over the next three months.
- Following the conclusion of the US Election, it will be interesting to see if the market starts to forecast and price in a further cut at the next meeting.
