South Korea’s consumer prices rise at fastest pace since 2008 | Business and Economy

Asia’s fourth-largest economic system noticed its shopper value index rise 4.8 p.c final month from a yr earlier.

South Korea’s shopper costs rose at their quickest tempo in almost 14 years in April on the again of surging meals and vitality costs, within the newest signal of excessive inflation taking off in Asia.

Asia’s fourth-largest economic system noticed its shopper value index (CPI) rise 4.8 p.c final month from a yr earlier, up from a 4.1 p.c enhance in March, Statistics Korea information confirmed on Tuesday.

The rise, which exceeded market expectations, marks the quickest value development since October 2008, in the course of the world monetary disaster.

The index rose 0.7 p.c on a month-to-month foundation, after rising 0.7 p.c in March. Core inflation, which excludes unstable vitality and meals costs, rose to three.1 p.c on a year-on-year foundation in April, up from 2.9 p.c in March and the very best since Might 2009.

The surge in costs is prone to enhance stress on the Financial institution of Korea, whose new governor Changyong Rhee has expressed considerations about mounting inflation dangers, to extend rates of interest at its subsequent coverage assembly on Might 26.

After avoiding the hovering inflation seen in the US and Europe, Asian economies have become increasingly concerned about rising prices amid inflationary pressures including the war in Ukraine and pandemic-related supply chain disruptions.

The Financial institution of Korea, which is seen as one of many area’s extra hawkish central banks, final month introduced a shock 0.25 p.c rate of interest enhance, taking the benchmark fee to 1.50 p.c.

The transfer marked the fourth enhance of the central financial institution’s base fee because it started tightening coverage in August final yr as one of many first central banks in high-income international locations to boost the alarm about inflation.

Singapore and New Zealand also raised interest rates last month amid rising inflation considerations, whereas Australia is tipped to announce the primary of a collection of fee hikes on Tuesday.

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