Moody's Analytics economist John Bromhead said September data suggest recent
tightening by the Bank of Korea may be starting to ease underlying price
pressures. Core inflation slowed to 2.8% in September from 3.4% the prior month;
improved supply around the Mid-Autumn holiday eased some food-price pressure and
services inflation momentum moderated. Elevated energy costs remain a persistent
source of pressure for households and firms. Bromhead said further Bank of Korea
hikes are unlikely to relieve energy- and transport-driven inflation, but strong
September trade data may give the central bank room to consider another increase
in November.
