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S Korea May inflation eases, boosts steady rate view

South Korean inflation eased in May for a second consecutive month, coming in just below market expectations on lower fresh food prices, data showed on Wednesday, reinforcing the view that the central bank may keep interest rates on hold next week.

Still-high inflation and accelerating core inflation will remain a concern for the Bank of Korea, but growing signs of softening economic growth would also pressure the central bank to keep rates on hold for a third consecutive month, analysts said.

The consumer price index rose 4.1 percent in May from a year earlier, Statistics Korea data showed, just missing the median forecast in a Reuters survey that the inflation would hold steady from April at 4.2 percent.

(Source: CNBC)