Lost your password?
Don't have an account? Sign Up

S.Korea Oct inflation hits near decade-high, raising rate hike bets By Reuters


© Reuters. FILE PHOTO: Women look at their moblie phones in the Hongdae area of Seoul, South Korea, June 29, 2016. REUTERS/Kim Hong-Ji

By Joori Roh

SEOUL (Reuters) -South Korea’s consumer inflation accelerated to a near 10-year peak in October on higher costs in oil products, housing rentals and outdoor dining, putting pressure on policymakers ahead of the last monetary policy meeting of the year.

The consumer price index (CPI) jumped 3.2% from a year earlier in October, government data showed on Wednesday, the fastest growth since January 2012 and up from a 2.6% rise in September.

That matched a 3.2% increase tipped by analysts in a Reuters survey and continued to stay above the central bank’s 2% target for a seventh straight month.

Wednesday’s data showed the cost of petroleum surged 27.3%, while that of housing rentals rose 1.8% on year. Costs of outdoor dining increased 3.2%, while other services including accommodations also rose 2.3%.

That puts the Bank of Korea’s (BOK) monetary policy board under pressure to raise the base rate further at the Nov. 25 meeting, following its first rate hike in almost three years in August.

The BOK currently sees inflation standing at 2.1% for the whole of 2021 and 1.5% for 2022, but the revision of forecasts will be announced at the November meet.

Core CPI, which excludes volatile energy and food prices, rose 2.4% year-on-year, the fastest growth since December 2015 and up from 1.5% in September.

Month-on-month inflation rose 0.1%, slowing from September’s 0.5% rise but in line with forecasts.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link