S. Korea’s inflation likely to be at 1.4% in 2016

Bank of Korea recently stated that the county's inflation faced risk from multiple factors such as oil, agriculture and weak private consumption weighed downward risk on inflation, making it difficult for the central bank to achieve its inflation target. Further in a report it noted that the economy is likely to recover based on consumption, however, it was uncertain about its growth potential.

Further downside risk is faced as domestic demand could deteriorate further, while increasing competition among oil producing counties could result oil prices to decrease.

The BOK expects the inflation to be at 1.2 percent in H1 and 1.5 in H2 2016. For 2016 inflation is likely to be at 1.4 percent, while 2.0 percent in 2017.