Lowest inflation in Korea

Lowest inflation in Korea

SEOUL (DPA): The inflation rate in South Korea in 1999 fell to 0.8 percent, its lowest level in 35 years when the country started compiling such statistics, the Finance Ministry said Thursday.

In 1998, the annual inflation rate was 7.5 percent, it said.

Consumer price index in December was 1.4 percent higher than the year-earlier month and down 0.2 percent from November 1999. Analysts attributed the November-to-December decline to cheaper prices for crude oil and electronic equipment.

The South Korean central bank predicted consumer prices next year would climb by 3.1 percent in an economy expected to grow by 7.2 percent, after 10.2 percent in 1999. The bank had earlier forecast 3.8 percent inflation in the year 2000. The inflation target of the government for next year in less than 3 percent.