S. Korean inflation likely to rebound due to base effects

Both South Korea's headline and core inflation are likely to have rebounded on a year-on-year basis in October due to base effects. 

Energy prices should continue to decline, although the pace of decline is likely to ease as crude oil prices stabilised. Fresh food prices are likely to fall due to seasonal factors, but their yoy inflation is expected to rebound due to the more pronounced decline seen in October 2014.

"Month-on-month inflation is expected to be 0.0% for headline and 0.1% for core, compared with -0.3% and 0.0% respectively in October 2014", says Societe Generale. 

Core inflation should extend its recent stable performance driven by service prices. Headline inflation should continue to rise in November and December as the favorable base effects persist, while core inflation should remain stable at around the current level, again based on steady service inflation.