Inflation accelerated more than economists estimated last month, adding pressure on central bank Governor Raghuram Rajan to raise interest rates again. The wholesale price index advanced 7 percent from a year earlier, compared with a 6.46 percent climb in September, the Commerce Ministry said in a report yesterday. The median of 40 estimates in a Bloomberg News survey was 6.95 percent. August inflation was revised to 6.99 percent from 6.10 percent, the report showed.
Bank keeps rates unchanged
The central bank kept its benchmark interest rate unchanged at 2.5 percent yesterday for the sixth straight month as the economy shows moderate recovery and inflation remains under control. The Bank of Korea forecast a steady pickup in the coming months thanks to easing conditions at home and abroad, but it said there remained downside risks, including uncertainty over the US stimulus program and another possible budget standoff in Washington. Bank of Korea Governor Kim Choong-soo said economic growth was likely to come close to its full potential in the second half of next year.
Economic growth slows
Growth of the economy, Europe’s biggest, slowed to 0.3 percent in the third quarter on sluggish exports, official data showed yesterday. GDP expanded by 0.3 percent in the period from July to September, slower than the 0.7 percent recorded in the preceding three months, the federal statistics office Destatis said in a statement. The statisticians said private household and public spending were somewhat higher than in the preceding quarter, while investment in equipment and construction also increased compared with the second quarter.
Apple demands US$380m
Apple Inc is demanding that Samsung Electronics Co pay it US$380 million for copying vital iPhone and iPad features. An Apple attorney made the demand on Wednesday during opening statements of a Silicon Valley patent trial. A previous jury already has concluded that 26 Samsung products copied Apple’s scrolling function, iPhone design and other features. That jury ordered Samsung to pay Apple US$1.05 billion.
EADS profit jumps 45%
European giant EADS yesterday said its third quarter net profit jumped by 45 percent to 436 million euros (US$587 million) as it revised upward its estimate of Airbus orders for the year. Net profit for the first nine months this year rose by 36 percent to 1.2 billion euros, EADS said in a statement. The company expects gross commercial aircraft orders for this year to reach more than 1,200 aircraft, but EADS chief executive Tom Enders said that “significant challenges” lie ahead with respect to cash generation and the A350 XWB wide-body jetliner.
Burberry revenue soars
British group Burberry said yesterday that first-half net profits soared by a third, as revenues raced past ￡1 billion (US$1.6 billion) for the first time. Earnings after taxation jumped to ￡112.7 million in the six months to Sept. 30, compared with the same part of its previous financial year, Burberry said in a results statement. The company added that revenue jumped 17 percent to ￡1.03 billion in the period on keen global demand for its luxury clothing and accessories.