South Korea inflation quickens in February after three months of easing

SOUTH Korea’s consumer inflation accelerated in February after three months of easing and was faster than market expectations, official data showed on Wednesday (Mar 6).

The consumer price index rose 3.1 per cent in February from the same month the year before, compared with a rise of 2.8 per cent in January and a gain of 2.9 per cent tipped in a Reuters poll of economists.

On a monthly basis, consumer prices rose 0.5 per cent, after rising 0.4 per cent in the previous month. It was the fastest jump since September, according to Statistics Korea.

By product, prices of agricultural products climbed 5.7 per cent over the month, leading the index higher, while petroleum products rose 2.5 per cent.

Policymakers have said inflation could be volatile in February and March but are expected to continue stabilising afterwards.

The Bank of Korea last month held interest rates steady for a ninth straight meeting, while seeking to hose down investors’ aggressive rate cut expectations with inflation still far above the central bank’s target of 2 per cent. REUTERS