Survey: Korea ' s August inflation rate exceeded 3 per cent, rising to 3.3 per cent

ON 1 SEPTEMBER, THE MEDIAN FORECAST FOR 13 ECONOMISTS SURVEYED BY THE WALL STREET JOURNAL INDICATED THAT THE REPUBLIC OF KOREA EXPECTED A 3.3 PER CENT INCREASE IN THE CPI IN AUGUST, COMPARED TO 2.8 PER CENT IN JULY, AND A 0.4 PER CENT INCREASE IN THE RING. DEUTSCHE BANK ANALYSTS HAVE STATED THAT HIGHER COST PRESSURES CONTINUE TO FLOW TO TERMINAL PRICES, WHILE IMPROVED INCOME PERFORMANCE FURTHER INCREASES DEMAND-SIDE INFLATIONARY PRESSURES. THE CENTRAL BANK OF KOREA HAS PREVIOUSLY INDICATED THAT THE ACCELERATION OF INFLATION IN AUGUST WAS PARTLY DUE TO THE BASE EFFECT. DURING THE SAME PERIOD LAST YEAR, LOCAL MOBILE COMMUNICATIONS OPERATORS PROVIDED DISCOUNTS ON COMMUNICATIONS COSTS, PUSHING DOWN THE THEN-PRICE LEVEL. KOREA'S AUGUST CPI DATA WILL BE RELEASED ON WEDNESDAY. KIM XIAN