S Korea inflation to exceed 6% as early as June: finance minister

SOUTH Korea’s consumer inflation is expected to exceed 6 per cent as early as June, or possibly in July or August, the finance minister said on Sunday (Jun 26).

South Korea’s consumer inflation in May rose to 5.4 per cent, its highest in 14 years.

Finance Minister Choo Kyung-ho said the government was watching the situation very closely and making an all-out effort to stabilise consumer prices, during an interview with local broadcaster KBS.

Choo said he did not see the Korean won’s recent weakness below 1,300 per US dollar as a sign of economic crisis, as it was in line with the greenback’s strength globally.

He reaffirmed that the authorities would take market stabilising measures if herd-like movements intensified in the currency market.

South Korea’s central bank governor Rhee Chang-yong said last week that the country’s June consumer price index was likely to be higher than the May figure. REUTERS