The consumer price index rose 1.5% on the year in April, up from a 1.3% gain the previous month, marking the fastest pace since August, according to Statistics Korea.
The April reading was a lower than the median 1.6% increase forecast by economists . Officials at the statistical office attributed the accelerated inflation in April partly to a lower comparison base a year ago when the prices of oil and other industrial goods prices were falling.
Month on month, the April index gained 0.1% after a 0.2% rise in March.Core CPI, which strips out volatile energy and food prices, rose 2.3% on the year in April after increasing 2.1% in March. The index gained 0.2% on the month in April following a 0.3% rise in March.
The Bank of Korea said in April it expects CPI to rise 2.1% for all of 2014, following a 1.3% increase in 2013--the slowest in 14 years.
The central bank has held its key policy rate at 2.5% since May last year. The BOK maintains an inflation target band of 2.5% to 3.5%.