South Korea's producer price index gained at the fastest pace in three years last month as oil costs rose to a record.
The index, which measures prices paid to producers, advanced 4.4 percent from a year earlier, after a 3.4 percent increase in October, the Bank of Korea said yesterday in Seoul. That was the most since December 2004, when the index rose 5.34 percent.
The increase isn't likely to prompt the central bank to raise interest rates at its next meeting because the US economic slowdown and financial-market turmoil have clouded the outlook for growth. Policy makers have kept the overnight call rate unchanged since August.
"The Bank of Korea will take some time until the global turmoil dies down before any rate hike," said Seo Chul-soo, a fixed income strategist with Daewoo Securities Co in Seoul.
Bank of Korea Governor Lee Seong-tae and his fellow policy makers kept the benchmark interest rate at a six-year high of 5 percent on Friday. The bank delivered two straight increases in July and August to keep soaring lending from fanning asset-price bubbles and inflation.
Bond yields jumped to the highest in more than five years on Friday after Lee said inflation will accelerate.
Prices of industrial goods climbed 5.4 percent from a year before, after October's 3.5 percent gain. Utilities jumped 5.9 percent.
Prices of agricultural, fisheries and livestock produce rose 0.6 percent from a year earlier after gaining 3.4 percent in October, yesterday's report showed.
The price of Dubai crude oil, South Korea's benchmark, has risen 50 percent this year. South Korea buys 97 percent of its energy and resource needs.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
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