Rising commodity prices herald pickup in S. Korea's inflation: report

SEOUL, Jan. 22 (Yonhap) -- South Korea's inflation is expected to accelerate this year in lockstep with an expected rise in the prices of global commodities, a report showed Sunday.

According to the report compiled by the Bank of Korea (BOK), commodity prices will continue their upward trend this year with crude oil prices expected to hover above US$50 per barrel on the back of a recovery in the automaking sectors in China and other emerging countries, and an OPEC deal to reduce crude oil output.

"This year's crude oil market is expected to be near a supply-demand balance level, and nonmetal prices are also likely to remain strong this year," the central bank said.

Consequently, South Korea, highly dependent on energy and commodity imports for its uses, will see its consumer prices coming under growing pressure to rise down the road, it noted.

Usually, any change in global commodity prices affects the country's produce prices, a proceeding barometer of consumer prices in Asia's fourth-largest economy.

Last year, the country's inflation rose 1 percent, accelerating from the previous year's 0.7 percent on-year gain.

The central bank estimated earlier that the country's consumer prices may gain 1.8 percent this year.

sam@yna.co.kr
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