South Korea consumer inflation accelerates in June

AP News
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Posted: Jun 30, 2011 9:39 PM
South Korea consumer inflation accelerates in June

South Korea's government says the country's inflation rate accelerated in June after having eased the previous two months.

Statistics Korea said Friday that the consumer price index rose 4.4 percent from a year earlier amid higher prices for food and transportation. The index had risen 4.1 percent in May.

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

The latest figure comes a day after the South Korean government raised its inflation forecast for this year to 4 percent from the previous figure of about 3 percent.

South Korea's central bank has raised its key interest rate five times since July last year in a bid to stem inflation.