South Korea's consumer price rises 5pc in December
South Korea's consumer price rose 5.0 percent in December from a year earlier, hovering above 5.0 percent for the eighth consecutive month, statistical office data showed.
After peaking at 6.3 percent in July, the consumer price inflation slowed down to 5.7 percent in August, 5.6 percent in September, 5.7 percent in October and 5.0 percent in November, according to Statistics Korea.
Price for electricity, natural gas and tap water surged 23.2 percent in December from a year ago.
Processed food price advanced 10.3 percent in December, marking the fastest increase since April 2009 amid higher prices for grain and crude oil.
Dining-out cost went up 8.2 percent in December, but it was lower than an 8.6 percent gain in November.
Prices for chicken, onion and mackerel jumped 24.
Asian markets were mostly lower on Wednesday as China's move to reopen after abandoning its zero-Covid policy revived inflation fears.
China has abruptly reversed tight pandemic restrictions that kept the world's second-largest economy isolated for the past three years.
On Monday, Beijing announced it was ending quarantine measures for overseas arrivals from January 8, the latest move to loosen its zeroCovid regime, after it dropped mandatory testing and lockdowns earlier this month.
China's scrapping of pandemic restrictions has spurred hopes for its economic revival but also raised fears it will add to inflationary pressure.
Moving to reopen even as the Asian giant battles a massive spike in Covid cases has caused jitters, with the United States and several other countries saying they may restrict travel from China and introduce mandatory PCR tests for arrivals.
"While a full China reopening could provide a much-needed and timely boost to the global economy, it may come with unwelcome ambiguous strings attached," said Stephen Innes of SPI Asset Management.
"The good news is that inflation subsides as China reprises its role as a supplier of low-cost goods globally and supply chain bottlenecks ease," he added.
"Still, the bad news is as growth accelerates through Q1, China's insatiable demand for raw materials and all things energy will push up prices of those commodities, much to the consternation of the Fed and ECB. Indeed, reopening is rekindling some inflationary spirits."
Fresh data last week indicated a slowing of US inflation, but the news was not definitive and eyes will be on how the Federal Reserve moves to balance inflationary concerns alongside the possibility of a recession caused by increased borrowing costs.
"We may get a pivot later on next year from the Federal Reserve where they actually start cutting rates, but that's going to happen when the situation is going to become much more dire than it is now," Matt Maley, chief market strategist for Miller Tabak, said on Bloomberg TV.
"If we just have this slow grind lower, the Fed's going to keep interest rates at high levels even if they stop raising rates in any kind of way."
Asian markets mostly headed south, with Tokyo giving up 0.4 percent, Seoul sliding more than 2.2 percent and Shanghai down 0.3 percent. Sydney, Singapore, Kuala Lumpur, Jakarta and Taipei also retreated while Wellington and Bangkok were among the few gainers.