The survey of consumer CPI expectations in South Korea is showing some encouragement.

12 month median inflation expected at 4.3% y/y. In jult it was 4.7%.

Like other central banks, the Bank of Korea (South Korea's central bank) does not want high, unanchored CPI expectations.



Consumer sentiment in August improved to 88.8

  • prior 86.0


I posted on anchored inflation expectations previously if you are interested.

  • The argument is that inflation expectations can become self-fulfilling. For example during times of increasing inflation - people see inflation rising so they tend to buy more quickly, thus prompting prices to rise faster. People expect faster inflation (i.e. its 'unanchored' ... rising quickly)
inflation expectations