South Korea’s Central Bank Increases Its Inflation Forecast

South Korea’s inflation will probably accelerate more than previously forecast while economic growth stays in line with expectations, the Bank of Korea said.

Consumer prices may increase 3.9 percent in 2011, faster than the previous estimate of 3.5 percent, the central bank forecast in a statement in Seoul today. Gross domestic product is projected to expand 4.5 percent this year and 4.8 percent in 2012 after a 6.2 percent gain in 2010, it said. The bank predicted in December growth of 4.7 percent for next year.