South Korea’s consumer prices rise at fastest pace since 2008

Asia’s fourth-largest economic system noticed its shopper worth 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 [File: SeongJoon Cho/Bloomberg]

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 worth 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 worth development since October 2008, throughout 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 risky 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 more likely to enhance strain 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 change into more and more involved about rising costs amid inflationary pressures together with the conflict in Ukraine and pandemic-related provide 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 nations to lift the alarm about inflation.

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