SEOUL, Nov 3 (Reuters) - South Korea's headline inflation slowed in October, government data showed on Tuesday, providing a slight reprieve for central bankers but remaining firmly above target.
Consumer prices rose 2.8% year-on-year in October, down from a 2.9% gain in September and nearly matching a 2.85% increase forecast in a Reuters poll of economists.
The consumer price index rose 0.2% on a monthly basis after gaining 0.3% in the previous month, the data showed.
While the slower growth offers the Bank of Korea a brief respite, inflation remains well above its 2.0% target.
Amid elevated global energy prices and rising household borrowing, the BOK is widely expected to hike rates in the coming months, maintaining its tight monetary posture to calm persistent inflationary pressures in Asia’s fourth-largest economy.
A separate poll showed consensus forecasts put the peak policy interest rate at 3.50%, which prices in one more hike this November and another in the first quarter of 2027.
Reporting by Cynthia Kim and Moonyoung Tae; Editing by Jamie Freed
Source: Reuters