S. Korea Sep CPI rise 2.3% from year ago

Oct 2, 2007 - South Korean consumer prices in September rose 2.3 per cent from a year earlier, data showed on Tuesday, accelerating from August but slightly missing expectations ahead of a central bank policy review next week.

The median forecast in a Reuters poll was for the CPI to rise 2.4 per cent from a year earlier, accelerating sharply from growth of 2.0 per cent in August.

Annual inflation has held at or below the low end of the Bank of Korea's 2.5-3.5 per cent target range after it averaged 2.2per cent in 2006.

The consumer price index rose a non-seasonally adjusted 0.6 per cent in September from August, picking up from a monthly gain of 0.1 per cent in August, the data from the National Statistical Office showed.

The annual rate of core inflation, which strips out volatile food and fuel prices, held steady at 2.3 per cent in September.

The Bank of Korea held interest rates steady in Septemberafter raising them by a quarter percentage point each in August and July to a six-year high of 5.0 per cent.

The Bank of Korea reviews interest rates on Oct 11.