Korea's inflation rate last year was lower than that of Japan's for the first time in more than 40 years.<br />And this is raising concerns once again... that Korea might be on the path to a Japan-style deflation.<br />Here's Sohn Jung-in with more.<br /><br />Korea's inflation rate stood at 1-point-3 percent in 2014,... almost one-and-a-half percentage points lower than that recorded by Japan. <br />It's the first time since 1973... that Korean consumer prices grew slower than Japan's.<br />While Japan's inflation rate was buoyed by a weak yen... and a sales tax hike,... prices in Korea remained flat... due to a drop in petrochemical products and agricultural goods. <br />But it's not just Japan... where prices grew faster than Korea,... prompting concerns that the domestic economy... might be nearing a Japan-style deflation.<br />Korea's consumer prices were even below the OECD average of 1-point-7 percent... and the average price growth rate of 1-point-6 percent of G7 countries,... including Canada and... the United States. <br />The Korean government, however,... has dismissed concerns over deflation risks,... saying the country's prices, excluding volatile energy and food components,... rose 2-point-3 percent last month from the same period a year ago.<br />For all of last year,... the core inflation grew by 2 percent from 2013. <br />An unnamed finance ministry official says... that the government so far has no specific plans to tackle the country's low price trend.<br />Sohn Jung-in, Arirang News.
