2 Apr 2011

Inflation rising in Sth Korea

7:52 am on 2 April 2011

The rate of inflation in South Korea reached a 29-month high in March as higher fuel and food costs continued to push consumer prices upwards.

The Consumer Price Index rose by 4.7% in March from a year ago, according to the statistical office.

The BBC reports it was the second consecutive month that inflation has been above the central bank's maximum target of 4%.

However, analysts say that this is unlikely to prompt the Bank of Korea to raise interest rates immediately.

According to the latest government data, shipments from South Korea grew by 30% in March compared to the same month a year ago.

Exports for the month stood at $US48.6 billion compared with $US45.5 billion worth of imports.