South Korea’s prices soar to near quarter-century high | Business and Economy

Inflation hits 6.3 p.c in July, the very best charge since November 1998.

South Korea’s costs rose greater than 6 p.c in July in contrast with final yr, the quickest bounce in practically 1 / 4 century.

The East Asian financial system’s shopper value index rose 6.3 p.c final month, Statistics Korea knowledge confirmed on Tuesday, up from 6 p.c in June.

On a month-to-month foundation, the index rose 0.5 p.c final month, down barely from a 0.6 p.c acquire in June.

The acquire, which was in keeping with market expectations, marks the very best charge of inflation since costs rose 6.8 p.c in November 1998.

The heady inflation knowledge comes because the Financial institution of Korea (BOK) mulls additional rate of interest hikes at its subsequent coverage assembly on August 25.

The central financial institution is broadly seen as having extra respiratory area to boost charges after Asia’s fourth-largest financial system grew a faster-than-expected 2.9 p.c year-on-year within the second quarter.

The BOK final month unveiled an unprecedented half a proportion level hike to elevate the benchmark rate of interest to 2.25 p.c.

Central financial institution policymakers, who started elevating rates of interest earlier than most of its friends, described the July hike as uncommon, signalling that extra modest will increase had been doubtless in future.

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