- POSTED: 01 Jul 2014 14:14
South Korean inflation came in at 1.7 per cent in June owing to steady rise in the cost of clothes and utilities services, official data showed Tuesday.
SEOUL: South Korean inflation came in at 1.7 per cent in June owing to steady rise in the cost of clothes and utilities services, official data showed Tuesday.
The figure is the same as May and the fastest pace for 19 months, Statistics Korea said. However, its is still well below the central Bank of Korea's target of 2.5-3.5 per cent.
Prices fell 0.1 per cent month on month.
The cost of gas, water and electricity rose three per cent on-year, the same pace as May, while clothes prices climbed 4.6 per cent, accelerating from 4.2 per cent a month earlier.
Core inflation, excluding volatile oil and food prices rose 2.1 per cent, against May's 2.2 per cent.
The Bank of Korea has forecast an inflation rate of 2.1 per cent for 2014, following a 1.3 per cent increase in 2013, which was the slowest in 14 years.
The central bank has held its key interest rate at 2.5 per cent since May last year.