South Korean Producer-Price Inflation Eases Before Rate Decision
February 08, 2012, 11:24 PM ESTBy Eunkyung Seo
Feb. 9 (Bloomberg) -- South Korean producer prices rose at the slowest pace in 17 months in January, according to a report released hours before a central bank decision is due on benchmark interest rates.
Prices climbed 3.4 percent from a year earlier after a 4.3 percent increase in December, the Bank of Korea said in a statement in Seoul today. They rose 0.7 percent from December.
The central bank will keep the benchmark seven-day repurchase rate unchanged at 3.25 percent, according to 18 of 19 economists in a Bloomberg News survey. One analyst sees a cut to 3 percent. The decision is due this morning.
“We expect the central bank to keep rates at 3.25 percent this month to gain more information before potentially cutting in March,” Ronald Man, a Hong Kong-based analyst at HSBC Holdings Plc. said before today’s data.
Today’s report showed the cost of fruit fell about 20 percent in January from a year earlier. The price of vegetables slid 14 percent.
--Editor: Paul Panckhurst, Seyoon Kim.
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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
