APD | South Korea reports record-low inflation in 2019

By APD writer Alice

South Korea's inflation gained only 0.4 percent last year, marking the slowest since 1966, according to Statistics Korea.

Core inflation, which excludes agricultural and petroleum products, rose 0.7 percent from a year earlier, far below the Bank of Korea (BOK)’s target of 2 percent.

Consumer prices showed weaker growth in 2019, with consumer demand slowing as the local economy is expected to post its weakest annual growth in a decade.

In 2018, the consumer price index expanded 1.5 percent on-year.

In its statement, the South Korean Ministry of Economy and Finance attributed this year's record low inflation to weaker prices of agricultural goods and oil.

For 2020, the consumer price index will rise 1 percent on-year as prices of farm goods and oil are forecast to rebound, the ministry said, noting that the government will continue to make efforts to stabilize prices of basic necessities this year.

(ASIA PACIFIC DAILY)