South Korean consumer prices in July rose 5.9 percent from a year earlier, data showed on Friday, beating market expectations and marking the fastest annual increase in nearly 10 years.

The median forecast in a Reuters poll was for the consumer price index (CPI) in July to rise 5.7 percent from a year earlier, accelerating from a 5.5 percent rise in June.

July’s figure was the strongest growth since a 6.8 percent annual gain in November 1998.

South Korea’s annual consumer inflation rate has been above the central bank’s 2.5 percent to 3.5 percent target range since December last year. The Bank of Korea has held interest rates for 10 consecutive months and next reviews policy on Aug. 7.

The consumer price index rose 0.7 percent from June, when the index rose 0.6 percent from May, the data from the National Statistical Office showed. The monthly figures are not adjusted for seasonal patterns.

The annual rate of core inflation, which strips out volatile food and fuel prices, accelerated to 4.6 percent in July from 4.3 percent in June.

Source: http://www.afxnews.com

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