S.korea's CPI inflation to have remained low in March

South Korea will release March CPI data on 1 April. The data on 2014 per-capita GDP, released on 25 March, indicated a 7.6% y/y increase in income to USD 28,180. However, private consumptioncontinues to slow versus 2014, suggesting prolonged disinflationary pressure. 

"We forecast inflation at 0.1% m/m and 0.4% y/y and expect the cigarette price hike to have boosted m/m inflation slightly, although without this effect, m/m inflation falls below 0%", says Standard Chartered. 

PPI inflation was negative for a seventh consecutive month in February, suggesting limited CPI inflation growth. 

"However, we believe M2 growth of 8% in February and positive signals in the housing market will lead to an uptick in inflation", added Standard Chartered.