The rate of price growth in South Korea was above 6% in July compared to the same month last year, which is the fastest increase in over twenty-five years.
According to Statistics Korea statistics released on Tuesday, the Consumer Price Index for the East Asian economy increased by 6.3 percent last month, up from 6 percent in June.
The increase, which met market forecasts, represents the largest inflation rate since prices increased by 6.8 percent in November 1998.
The Bank of Korea (BOK) is considering more interest rate increases at its upcoming policy meeting on August 25 as a result of the recent inflation data.
The fourth-largest economy in Asia grew faster than anticipated, by 2.9 percent year-over-year, in the second quarter, giving the central bank additional leeway to boost interest rates.
Policymakers at the central bank, which raised interest rates earlier than most of its competitors, characterized the July increase as extraordinary and said that future hikes would likely be more gradual.
