News

SocGen Predicts South Korea’s December CPI This Week

  • 31 December, 2021
  • 2:36 pm EET

SocGen Predicts South Korea’s December CPI This Week

Societe Generale said South Korea’s headline consumer price index (CPI) was expected to have eased in December after the impressive rise in October and November, although it was likely to have remained elevated at 3.5% y/y.

South Korea was slated to release December CPI data at 11:30 p.m. GMT on Friday.

The main driver for the decline in year-on-year headline inflation should be energy inflation, noted the bank. The temporary fuel tax cut implemented in mid-November should be reflected in the December CPI, and the crude oil price also declined due to concerns about the omicron variant.

Fresh food inflation was likely to fall a bit after the jump in November, while the recent steady rise in processed food inflation should continue for another month. Core inflation should finally break through the 2.0% y/y level (at 2.1%) , extending the rising trend that started early this year.

Core goods inflation was expected to rise as global supply problems began to affect South Korea, while SocGen should also see the boost from base effects.

In the services sector, housing rent and eating-out services inflation were likely to extend the recent increases, while personal services inflation excluding eating-out services and public services inflation were unlikely to change much from November.

The high level of inflation — headline above 3% and core above 2% — will reinforce the Bank of Korea (BoK) policymakers’ inflation concerns and SocGen’s base scenario of a total of 100bp rate hike in 2022.

Meanwhile, the government planned to revise the CPI benchmark from the release of December 2021 CPI, including the change in base year from 2015 to 2020 and the revision to the items and weights of the basket, though its accurate impacts on

the measured inflation was difficult to catch in advance.

 

Currencies

SYMBOL PRICE CHANGE %CHANGE
USD/JPY 115.11 +0.05 +0.04
EUR/JPY 130.35 +0.08 +0.06
AUD/USD 0.725 +0 +0.01
USD/CNY 6.346 -0.024 -0.37
USD/SGD 1.35 -0.002 -0.15
NZD/USD 0.683 +0 +0.03
USD/HKD 7.799 -0.001 -0.01
USD/INR 74.344 -0.056 -0.08

 

top 10 most mentioned US stocks on the WallStreetBets over the last 24 hours on December 31, 2021 :

  1. Tesla
  2. Nio
  3. Alibaba
  4. GameStop
  5. NVIDIA
  6. SoFi Technologies 
  7. Apple
  8. Advanced Micro Devices 
  9. AMC Entertainment
  10. Disney

 

Other News :

Yesterday, Tesla recalled 475,000 Model 3 and Model S cars to fix issues the cars had with their rear-view cameras and trunk latches. The problems are thought to increase crash risk, according to a US auto safety regulator, although no crashes or injuries have been reported. Shares were down by 1.46% in trading.

Shares of Shanghai-based EV company NIO have been having a terrible time in 2021. The company peaked at $63 in January and have fallen by about 40% since, much of that was in the last few months. This is fairly surprising given its most recent earnings saw triple digit growth. But the manufacturer had to halt its production amid Covid-19 and has failed to stack up to other competitors like Tesla. The rising threat of inflation is also heavily concerning for growth stocks.

Shares of China-based e-commerce giant Alibaba saw a bounce back of 7.2% yesterday after a three-day sell off. It appears to be linked to the company’s announcement that it was considering selling its 30% stake in social media company Weibo (WB) to the state-owened Shanhai Media Group.

 

Reliable Trading since 2012