Consumer inflation in South Korea hit a one-year low in March, official data revealed on Tuesday, coming in slightly below economists’ estimates.
The consumer price index rose 4.2% year on year in March, compared to 4.8% in February and a 4.3% increase predicted in a Reuters poll. That was the lowest annual increase since March of 2022.
According to Statistics Korea, the monthly increase in the index was 0.2%, following a 0.3% increase in the previous month.
The easing comes as investors have increased their bets that the South Korean central bank has completed its tightening cycle due to concerns over the global banking sector and local economic prospects.
The South Korean finance ministry and central bank forecast that inflation would continue to fall after supply disruptions for some materials were resolved and demand cooled as a result of aggressive interest-rate hikes throughout the world.
