SKorean inflation eases to 4.1 percent in May

AP News
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Posted: Jun 01, 2011 5:21 AM
SKorean inflation eases to 4.1 percent in May

South Korea's inflation rate eased in May for a second straight month, though remained above a level the central bank finds worrisome.

The consumer price index rose 4.1 percent from a year earlier, the government's Statistics Korea said Wednesday.

The rate has been above 4 percent for five straight months, which is outside the Bank of Korea's so-called tolerance range for consumer price inflation.

April's rate was 4.2 percent, which marked a sharp reduction from 4.7 percent in March. The latter was the highest level reached since October 2008.

The central bank has raised its key interest rate four times since July last year in a bid to stem rising prices, though paused in April and May.

The bank surprised analysts last month by leaving its benchmark borrowing cost unchanged at 3 percent. Economists had expected an increase to 3.25 percent.

The Bank of Korea's rate-setting Monetary Policy Committee next meets on June 10.