South Korea inflation quickens in February after 3 months of easing

FILE PHOTO: A customer picks up a lunch box at a convenience store in Seoul, South Korea, June 24, 2022. Picture taken June 24, 2022. REUTERS/ Heo Ran/File Photo

SEOUL — South Korea’s consumer inflation accelerated in February after three months of easing and was faster than market expectations, official data showed on Wednesday.

The consumer price index rose 3.1% in February from the same month the year before, compared with a rise of 2.8% in January and a gain of 2.9% tipped in a Reuters poll of economists.

On a monthly basis, consumer prices rose 0.5%, after rising 0.4% in the previous month. It was the fastest jump since September, according to Statistics Korea.

READ: South Korea consumer inflation softens to six-month low

By product, prices of agricultural products climbed 5.7% over the month, leading the index higher, while petroleum products rose 2.5%.

Policymakers have said inflation could be volatile in February and March but are expected to continue stabilising afterwards.

The Bank of Korea last month held interest rates steady for a ninth straight meeting, while seeking to hose down investors’ aggressive rate cut expectations with inflation still far above the central bank’s target of 2%.