Korea's consumer prices grew slower than Japan's last year
- 9 years ago
Korea's inflation rate last year was lower than that of Japan's for the first time in more than 40 years.
And this is raising concerns once again... that Korea might be on the path to a Japan-style deflation.
Here's Sohn Jung-in with more.
Korea's inflation rate stood at 1-point-3 percent in 2014,... almost one-and-a-half percentage points lower than that recorded by Japan.
It's the first time since 1973... that Korean consumer prices grew slower than Japan's.
While Japan's inflation rate was buoyed by a weak yen... and a sales tax hike,... prices in Korea remained flat... due to a drop in petrochemical products and agricultural goods.
But it's not just Japan... where prices grew faster than Korea,... prompting concerns that the domestic economy... might be nearing a Japan-style deflation.
Korea's consumer prices were even below the OECD average of 1-point-7 percent... and the average price growth rate of 1-point-6 percent of G7 countries,... including Canada and... the United States.
The Korean government, however,... has dismissed concerns over deflation risks,... saying the country's prices, excluding volatile energy and food components,... rose 2-point-3 percent last month from the same period a year ago.
For all of last year,... the core inflation grew by 2 percent from 2013.
An unnamed finance ministry official says... that the government so far has no specific plans to tackle the country's low price trend.
Sohn Jung-in, Arirang News.
And this is raising concerns once again... that Korea might be on the path to a Japan-style deflation.
Here's Sohn Jung-in with more.
Korea's inflation rate stood at 1-point-3 percent in 2014,... almost one-and-a-half percentage points lower than that recorded by Japan.
It's the first time since 1973... that Korean consumer prices grew slower than Japan's.
While Japan's inflation rate was buoyed by a weak yen... and a sales tax hike,... prices in Korea remained flat... due to a drop in petrochemical products and agricultural goods.
But it's not just Japan... where prices grew faster than Korea,... prompting concerns that the domestic economy... might be nearing a Japan-style deflation.
Korea's consumer prices were even below the OECD average of 1-point-7 percent... and the average price growth rate of 1-point-6 percent of G7 countries,... including Canada and... the United States.
The Korean government, however,... has dismissed concerns over deflation risks,... saying the country's prices, excluding volatile energy and food components,... rose 2-point-3 percent last month from the same period a year ago.
For all of last year,... the core inflation grew by 2 percent from 2013.
An unnamed finance ministry official says... that the government so far has no specific plans to tackle the country's low price trend.
Sohn Jung-in, Arirang News.