ECRI has just updated its Korean Future Inflation Gauge (KOFIG). The value of this forward-looking gauge lies in its ability to predict cyclical turns in Korean inflation.

In September, Korean consumer prices rose at their slowest pace in 14 years, despite positive signs for spending and a budget proposal calling for government expenditures to increase 4.6%. Meanwhile, foreign demand for Korean currency has risen of late, with foreigners’ net purchases of Korean stocks growing in each of the past three months, jumping to $7.1 billion in September alone.

The latest update to the KOFIG clarifies the future trajectory of Korean inflation, indicating whether Korean inflation will fall further or soon turn up.