South Korea: CPI inflation decelerated for the second straight month – ANZ

South Korea’s CPI inflation decelerated for the second straight month in March, albeit by less than expected, economists at ANZ Bank inform. USD/KRW is trading at 1226.00.

Key quotes

“Headline and core CPI in March decelerated 0.2% and 0.1% m/m, respectively. ‘Food and beverages’ was the only major component to record a noteworthy sequential rise in prices (0.9% m/m).” 

“Given the challenging outlook for growth, the price picture should be inconsequential for monetary policy. We expect the BoK to lower its policy rate by a further 25bps at its 9 April meeting.”