More evidence for the argument that the ‘last mile’ decline in inflation could be a prolonged process. South Korea’s February Consumer Price Index (CPI) + 3.1% y/y, fastest jump since September
- expected +2.9%, prior +2.8% in January
- for the m/m came in +0.5%, prior +0.4%
Core inflation +2.5% y/y in February
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If this ‘last mile’ issue is also going to be in play in other economies, maybe the eurozone and the US, for example, it’ll impact central bank decisions ahead. Slower to come rate cuts is the thinking.