South Korea August CPI leveled off year-on-year, record 2nd quarter downward revision-Reuters News-International

[Seoul 3rd Reuters]-The Korea Census Bureau's August Consumer Price Index (CPI) was flat year-on-year, the lowest year-on-year increase. In addition, the revised second quarter gross domestic product (GDP) announced by the Bank of Korea (Central Bank) was lowered from the preliminary figure due to the downward revision of exports.

The August CPI was expected to rise 0.2% year-on-year in the Reuters survey. Agricultural conditions led to a drop in agricultural prices, and consumer demand continued to soften, increasing the possibility that the central bank would cut additional rates as early as next month.

CPI rose 0.2% month-on-month. Market expectations were up 0.5%.

Separately, the second quarter quarterly revised GDP announced by the central bank was revised downward from a seasonally adjusted 1.0% increase compared to the previous quarter, and a 1.1% increase in the preliminary figures. Along with prolonged US-China trade friction, export growth was 2.0%, down from 2.3% of the preliminary figures.

GDP has been revised downward from 2.1% of the preliminary figure to 2.0%.

Concerns over deflationary risks may increase following weak CPI and GDP statistics.

“We have not yet fallen into deflation, but we need to start thinking about deflation in the medium term as data on weakness grows,” said Oh Chansov, a fixed income strategist at Korea Investment and Securities. There is. "