South Korea's inflation rate hits 24-year high

By Gokhan Ergocun

ISTANBUL (AA) – The annual inflation rate in South Korea hit a 26-year high in June, according to official figures released on Tuesday by the country's central statistical agency.

The Korea National Statistical Office said in a statement that the country's annual consumer price index (CPI) was at 6%, the highest rate since the Asian financial crisis in November 1998.

The main contributor to the country's high inflation last month was an increase in energy prices.

With energy and food excluded, the month's inflation rate was 3.9%.

Among sub-items, the highest price increase was seen in transport (16.8%), followed by restaurants and hotels (7.9%), and food and non-alcoholic beverages (6.5%).

Meanwhile, the Bank of Korea's official foreign exchange reserves dropped to $438.3 billion in June, decreasing by $9.4 billion from May, the largest decline since 2009, according to Yonhap News Agency.