Prices in South Korea rose at its fastest pace in almost a decade, exceeding its 2 percent target for the seventh consecutive month.
South Korea’s headline inflation jumped by 3.2 percent in October from a low base last year, according to government data. It was a sharp increase from 2.5 percent in September and the fastest since January 2012.
The strong increase was largely led by higher oil prices which increased by 27.3 percent year-on-year, prompting South Korean authorities to temporarily cut fuel taxes to help ease the effects of the global fuel hike.
The monthly change for October’s consumer price index was 0.1 percent, following the previous month’s 0.5 percent. The increase in petroleum prices was also the highest on a monthly basis at 2.8 percent.
In line with the data release, the Bank of Korea is expected to further tighten its monetary policy after its upcoming rate-setting meeting on Nov. 25.
The central bank hiked its base rate in August for the first time in three years in a bid to slow down inflation and a growing debt bubble in the housing sector.
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