South Korean inflation surges to 29-month high

| April 1, 2011 | 0 Comments
South Korean inflation surges to 29-month high

Statistics Korea has today announced the inflation rate has jumped to a 29-month high – driven by higher food and fuel costs.

According to Statistics Korea, the consumer price index rose by 4.7% in March on an annual basis.

The rate is now at the higher end of the central bank’s 2%-4% target.

On a monthly basis, the index rose 0.5% following a 0.8% increase in February.

Last month, the central bank elected to lift interest rates in order tame high inflation.

The move did not come as a surprise to analysts after the bank lifted its main interest rate from 2.75% to 3%.

Analysts believe more rate hikes are on the cards, with many predicting rates to be between 3.5% and 3.75% by the end of 2011.

Inflationary pressures are rife in Asia and many central banks have opted to hike interest rates in an attempt to combat rising prices.

In the last month or so, central banks in China, Indonesia, Vietnam, Thailand and India have all increased interest rates.

In other news today, Government data revealed shipments from South Korea rose by 30% last month on an annual basis.

Exports for March stood at $48.6 billion (£30.3 billion).

Tags: , , consumer price index, , food, fuel, , , , , , Statistics Korea

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