Bloomberg News

South Korean Producer-Price Inflation Eases to a Nine-Month Low

October 10, 2011

Oct. 11 (Bloomberg) -- South Korean producer prices rose at the slowest pace in nine months in September, bolstering the central bank’s scope to leave interest rates unchanged this week.

Prices climbed 5.7 percent from a year earlier, after a 6.6 percent increase in August, the Bank of Korea said in a statement in Seoul today. They increased 0.1 percent from August.

The Bank of Korea will leave its benchmark rate unchanged at 3.25 percent on Oct. 13 for a fourth straight month, according to all 11 economists in a Bloomberg News survey. Finance Minister Bahk Jae Wan said yesterday consumer prices show some signs of stabilizing, while adding that a weaker currency may push up the cost of imported goods.

Consumer prices in South Korea increased 4.3 percent in September from a year earlier, after a 5.3 percent gain in August.

--Editors: Sunil Jagtiani, Shamim Adam

To contact the reporter on this story: Eunkyung Seo in Seoul at eseo3@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net


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