ID :
28241
Tue, 11/04/2008 - 09:42
Auther :
Shortlink :
https://www.oananews.org//node/28241
The shortlink copeid
S. Korea's consumer price gain slows to 4.8 pct in October
(ATTN: ADDS more info in 3rd para, from 6th para)
SEOUL, Nov. 3 (Yonhap) -- South Korea's consumer prices grew at a slower pace in October than in the previous month as a decline in oil and commodity prices reduced overall import costs, a government report showed Monday.
The consumer price index rose 4.8 percent last month from a year earlier,
decelerating from a 5.1 percent on-year advance in the previous month, according
to the National Statistical Office (NSO).
This marked the third consecutive monthly drop after the index jumped by 5.9
percent in July, the highest in almost 10 years.
Last month's lower inflation comes from a sharp drop in prices of oil and other
commodities. The price of Dubai crude, South Korea's benchmark, has more than
halved since peaking in mid-July.
Still, the figure breached the central bank's target range for a 11th straight
month. The Bank of Korea aims to keep the nation's inflation rate under 3.5
percent until 2009.
Analysts say that the easing inflationary pressure provides more leeway for the
central bank to slash its key interest rates aimed at stimulating the slumping
local economy.
"Oil price declines will continue to be reflected in inflation figures and this
is good news for policymakers who need to ease monetary policies to stimulate the
economy, which is gripped by global financial and recession woes," said Lee
Sung-kwon, an economist at Goodmorning Shinhan Securities.
Last week, the Bank of Korea cut its interest rates by a record 0.75 percent to
4.25 percent and it is widely expected to cut the borrowing costs more in a
meeting to be held on Friday.
The prolonged global financial turmoil originating from the U.S. is currently
showing signs of affecting the economy worldwide, causing fears that South
Korea's export-driven economy may be among the list of victims.
South Korea's gross domestic product grew 0.6 percent in the third quarter from
three months earlier, marking the slowest growth in four years.
Earlier in the day, the Finance Ministry unveiled a wide range of economic
stimulus measures worth 14 trillion won (US$10.76 billion) including a
10-trillion won budget increase for next year. The expanded government spending
was intended to help kick-start the economy and low-income people tide over
difficulties.
The measure is in addition to a raft of actions taken by the government to
stabilize the hard-hit financial system including a three-year state guarantee of
banks' external debts.
The ministry forecast that the economy will grow around 4 percent next year
considering the positive effects of the latest economic stimulus measures despite
ongoing financial turmoil.
kokobj@yna.co.kr
(END)
SEOUL, Nov. 3 (Yonhap) -- South Korea's consumer prices grew at a slower pace in October than in the previous month as a decline in oil and commodity prices reduced overall import costs, a government report showed Monday.
The consumer price index rose 4.8 percent last month from a year earlier,
decelerating from a 5.1 percent on-year advance in the previous month, according
to the National Statistical Office (NSO).
This marked the third consecutive monthly drop after the index jumped by 5.9
percent in July, the highest in almost 10 years.
Last month's lower inflation comes from a sharp drop in prices of oil and other
commodities. The price of Dubai crude, South Korea's benchmark, has more than
halved since peaking in mid-July.
Still, the figure breached the central bank's target range for a 11th straight
month. The Bank of Korea aims to keep the nation's inflation rate under 3.5
percent until 2009.
Analysts say that the easing inflationary pressure provides more leeway for the
central bank to slash its key interest rates aimed at stimulating the slumping
local economy.
"Oil price declines will continue to be reflected in inflation figures and this
is good news for policymakers who need to ease monetary policies to stimulate the
economy, which is gripped by global financial and recession woes," said Lee
Sung-kwon, an economist at Goodmorning Shinhan Securities.
Last week, the Bank of Korea cut its interest rates by a record 0.75 percent to
4.25 percent and it is widely expected to cut the borrowing costs more in a
meeting to be held on Friday.
The prolonged global financial turmoil originating from the U.S. is currently
showing signs of affecting the economy worldwide, causing fears that South
Korea's export-driven economy may be among the list of victims.
South Korea's gross domestic product grew 0.6 percent in the third quarter from
three months earlier, marking the slowest growth in four years.
Earlier in the day, the Finance Ministry unveiled a wide range of economic
stimulus measures worth 14 trillion won (US$10.76 billion) including a
10-trillion won budget increase for next year. The expanded government spending
was intended to help kick-start the economy and low-income people tide over
difficulties.
The measure is in addition to a raft of actions taken by the government to
stabilize the hard-hit financial system including a three-year state guarantee of
banks' external debts.
The ministry forecast that the economy will grow around 4 percent next year
considering the positive effects of the latest economic stimulus measures despite
ongoing financial turmoil.
kokobj@yna.co.kr
(END)
