South Korea's headline inflation will continue to rebound

South Korea's CPI inflation data is scheduled to release on 4th August. 

According to Societe Generale's estimation, "Headline inflation is likely to have rebounded further from 0.7% in June to 0.9% in July, and month-on-month inflation is predicted to pick up from zero to 0.4%. Food prices will most likely rise rather significantly, due to weather-related gains in vegetables prices and the increase in beef and chicken prices. Inflation in manufacturing goods will probably be rather muted, both in oil and non-oil products."

Housing rents are forecast to extend their recent steady inflation of around 2.5% yoy, while personal service inflation will likely to also remain stable at 1.9% with a pickup in mom inflation due to seasonal factors (a rise in airfare during the summer peak season, etc.). 

Core inflation is expected to rise modestly from 2.0% to 2.1%. SocGen expects headline inflation to rebound further throughout H2 15, mainly due to base effects from oil prices - while core inflation will probably be relatively stable at around 2% until the end of this year.