South Korea inflation at nine-year high

Inflation moderating: Shoppers are seen through window glasses of a shopping mall in Seoul. The finance ministry says it expects inflation to moderate in June as base effects becomes less favourable. — Bloomberg

SEOUL: South Korea’s inflation rose to its highest since 2012 in May as the economy’s rebound gathered pace, adding support to views that the central bank could be among the first in the region to start normalising policy.

Inflation from a year earlier reached 2.6% from April’s 2.3%, according to data from the statistics office yesterday that matched the median estimate from economists. The figures were buoyed by comparison with last year’s price drop at the onset of the pandemic. Compared with the previous month, consumer prices rose 0.1%.