Won Surge Cuts Inflation Bets Most in Year as Demand Sinks
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Inflation expectations in South Korea are receding the most in a year as a resurgent won makes imports cheaper and mourning over a ferry disaster damps spending.
The Korea Development Institute, a state think tank, and Australia & New Zealand Banking Group Ltd. last month cut their annual inflation forecasts and central bank data showed consumer confidence dropped to an eight-month low in May. The breakeven rate, a measure of price increases bond traders expect over the life of inflation-linked notes, fell the most since April 2013.