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Bank of Korea Sees Faster 2021 Inflation After November Surprise

  • Inflation beats all economists’ forecasts; median was 3.1%
  • BOK sees 2021 CPI exceeding upward revision of just a week ago
Central Market as ‘Give-Up Generation’ Looks to Oust Old Guard in South Korea
Photographer: SeongJoon Cho/Bloomberg
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The Bank of Korea said it expects inflation this year to come in above its upward revision of just a week ago as consumer price gains exceeded all estimates in November, accelerating to the fastest pace since 2011.

Consumer prices rose 3.7% from a year earlier, the statistics office said Thursday, compared with a median forecast of 3.1%. That extended the run of gains above the Bank of Korea’s 2% target to an eighth straight month, validating the central bank’s two interest-rate increases since August and suggesting further tightening ahead.