04.07.202314:35:00UTC+00South Korea CPI Inflation Slows More Than Expected

South Korea's consumer price inflation slowed for a fifth month in a row and at a stronger than expected pace in June to its lowest level in nearly two years, figures from Statistics Korea showed on Tuesday.

The consumer price index, or CPI, rose 2.7 percent year-on-year in June, after a 3.3 percent increase in May. Economists had expected 2.9 percent inflation.

The latest inflation rate was the lowest in 21 months.

Consumer prices remained flat on a monthly basis in June following a 0.3 percent rise in the previous month. Economists had forecast a 0.2 percent increase.

Core inflation that excludes prices of food and energy slowed to 3.5 percent from 3.9 percent. The core CPI rose 0.1 percent from May when it climbed 0.3 percent.

Prices of food, beverages, utilities, restaurants and health increased from a year ago, while those of clothing and footwear, furnishings, transport and recreation declined.

Elsewhere on Tuesday, the government lowered its inflation projection for this year to 3.3 percent from 3.5 percent, the news agency Yonhap reported.

The growth forecast was cut to 1.4 percent from 1.6 percent due to the lackluster performance in the first half of the year, the finance ministry said. The economy is projected to grow 2.4 percent next year.

Employment is projected to grow significantly this year.