South Korea July inflation near 24-yr high as more tightening looms
SEOUL : South Korea’s consumer inflation sped up to a nearly 24-year high in July, data showed on Tuesday, supporting the market’s view for further central bank tightening this year.
The consumer price index (CPI) stood 6.3 per cent higher in July than a year earlier, accelerating from a 6.0 per cent rise seen in June. The July inflation rate was the fastest pace since a 6.8 per cent gain in November 1998.
It matched the median forecast in a Reuters survey.
The data supports expectations by economists that the central bank, which has raised the policy interest rate to 2.25 per cent from 0.5 per cent over the past year, will raise the rate yet further.
“Today’s data showed signs that inflation would begin slowing after the current quarter, but it will take longer for inflation expectations to ease due to lagging effects,” said Oh Chang-sob, an economist at Hyundai Motor Securities.
The index rose 0.5 per cent in July on a monthly…
