Bank of Korea Sees Inflation Outpacing Projection as Risks Rise
- Price pick-up contrasts with earlier expectation for slowdown
- Mideast conflict adds to uncertainties over inflation
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The Bank of Korea signaled it will adjust its inflation projection higher after prices rose more than expected last month, reinforcing the case to keep its restrictive policy in place for longer to respond to increasing geopolitical and economic uncertainties.
Consumer prices advanced 3.8% from a year earlier in October, with the pace of growth quickening compared with 3.7% in September, the statistics office reported Thursday. Economists surveyed by Bloomberg had expected inflation to come in at 3.6%.