CPI Rises At Fastest Pace In Nine Years

The won is weaker in early trade, USD/KRW up 1.85 at 1107.85, the pair rising from the lowest levels since February.

• Data earlier in the session showed May CPI rose in line with estimates at 2.6%, above the central banks 2% target which has been acknowledged by policy makers. Core CPI beat estimates at 1.5%. Following the release Vice FinMin Hong said the elevated print was due to a low base effect which is expected to gradually ease from the second half of the year, and South Korea would take measures to block excessive inflation expectations.
• South Korea reported 677 daily new coronavirus cases on Wednesday, back to over 600 for the first time in six days due to continued cluster infections, while health authorities are ramping up efforts to speed up the nationwide vaccination campaign to slow down the spread of the virus. As the vaccine rollout among the elderly population gains pace, the health authorities on Tuesday eased social distancing guidelines for vaccinated people.