S. Korea inflation eases to 3-month low at 2.9%

South Korea’s April inflation eased more than expected, with the consumer price index (CPI) reaching a 3-month low of 2.9 per cent, Reuters reported on Thursday.

This fuels market hopes for rate cuts later in 2024 as the central bank aims to bring inflation down to its two per cent target, as per the statement.

Government measures aimed at stabilising food prices, successfully resulting in a 3.9 per cent decline in the agricultural product prices. However, petroleum product prices continued to climb by 1.6 per cent.

Core inflation, which excludes volatile food and energy items, also showed signs of cooling. It rose 2.3 per cent year-on-year, down from 2.4 per cent in March and the slowest pace since December 2021.