SEOUL - South Korea's headline inflation returned to zero in October, after slipping into negative territory in September. Slowing food price deflation led the rise, but core inflation also rose to 0.8% y/y.
ANZ Bank says it expects headline inflation to approach 1% in the coming quarters, as high base effects fade.
"Coupled with signs that economic growth is starting to stabilise, we believe that the Bank of Korea (BoK) will hold its policy rate at 1.25% for a prolonged period," ANZ says. www.live.anz.com (ATI).