South Korea Inflation Slows More Than Forecast

(RTTNews) - South Korea's inflation softened more than expected to a five-month low in May, Statistics Korea reported Wednesday.

The consumer price index registered an annual increase of 1.9 percent in May after rising 2.1 percent in April.

A similar lower rate was last reported in December. Economists had forecast consumer prices to rise at a steady pace of 2.1 percent.

Core inflation that excludes prices of food and energy, slowed marginally to 2.0 percent from 2.1 percent in April.

On a monthly basis, the CPI edged down 0.1 percent, offsetting April's 0.1 percent rise.

The Bank of Korea had reduced its benchmark rate by a quarter-point in May in order to mitigate downside pressure on the economy. The bank had projected consumer price and core inflation at 1.9 percent.