South Korea Sept consumer inflation accelerates for second month

SOUTH Korea’s consumer inflation accelerated for a second month in September, outpacing market expectations, official data showed on Thursday.

The consumer price index stood 3.7 per cent higher in September from a year earlier, after recording a 3.4 per cent rise in August. Economists in a Reuters survey had expected the figure to stay unchanged.

It was the second consecutive month the annual rate quickened, from a 25-month low of 2.3 per cent in July, and marked the fastest annual rise in five months.

Finance Minister Choo Kyung-ho said after the data release that inflation would likely stabilise again from October with seasonal factors easing.

On a monthly basis, the index rose 0.6 per cent, according to Statistics Korea, compared with a 1.0 per cent jump the previous month and a median 0.3 per cent forecast.

Broken down by sector, prices of petroleum products jumped 4.0 per cent over the month, agricultural prices climbed 4.1 per cent, while public utility prices added 5.3 per cent.

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Core CPI, which excludes volatile food and energy prices, was 3.3 per cent higher in September on an annual basis, the same as in August.

The data comes two weeks before the Bank of Korea’s next policy decision. The central bank held interest rates steady for a fifth straight meeting at its last review in August, seeking to balance softer inflation and heightened risks to growth. REUTERS