S. Korean consumers' inflation forecast for March contracts

By Park Sae-jin Posted : March 26, 2015, 16:59 Updated : March 26, 2015, 17:56

 

Despite recent base rate cuts, South Korean consumers' inflation forecast for the next one-year period fell to a record low of  2.5 percent in March, the central bank said Thursday.

The figure represents a decrease of 0.1 percentage point from the previous month, according to the Bank of Korea (BOK).

The benchmark interest rate has tumbled from 2.50 percent to a record low of 1.75 percent since August last year, but consumers' inflation forecast fell 0.3 percentage point to 2.5 percent during the same period. The BOK lowered the key rate by 0.25 percentage point each in August 2014, October 2014 and March 2015, in an effort to bolster growth momentum.

The latest rate cut came as "both growth and consumer inflation rate are expected to be lower than expected."

Meanwhile, the country's consumer sentiment declined in March, after rising for two straight months.
 
The composite consumer sentiment index (CCSI) for March stood at 101, down two points from February, the central bank said based on a survey of 2,024 households nationwide, which was conducted between March 12 and March 19.

Other results of the poll include: 

― Consumer sentiment on current living standards was one point higher than during the month before at 90, while that for their outlook remained unchanged at 98.

― Consumer sentiments regarding current domestic economic conditions and their future outlook were up by one point each compared to February, at 72 and 88 respectively.

― Consumer sentiments on prospective changes in household income and that on expected spending were both three points below their figures in February, at 99 and 106, respectively.
기사 이미지 확대 보기
닫기