South Korea: Inflation slightly higher on lower base – ANZ

Analysts at Australia and New Zealand (ANZ) are out with their after thoughts on the below forecast South Korean inflation data released earlier on Monday.

Key Quotes:

‘South Korea’s headline inflation rose in November, but by less than expected.

The increase reflected slowing food and transport price deflation, while core inflation softened. We expect headline inflation to move towards 1% in the coming quarters, as high base effects fade, though it will remain some way below the Bank of Korea’s (BoK) 2% target.

The combination of subdued price pressure and lacklustre growth makes it difficult to completely rule out further easing by the BoK in 2020, even though our current forecast is for a rate hold next year.”