The South Korean economy announced that the inflation pace moderated to its slowest pace in a year in January that is within the central bank's targeted range of 2% to 4%, giving policy makers a chance to keep the borrowing rate unchanged next week.
As, the Consumer prices rose to 3.4% from a year earlier, matching the gain in January 2011 and compared with December's increase of 4.2%, also it came below estimates of 3.6% increase.
As, the European debt crisis negatively affects both of the consumer and business sentiments, which also hurts the nation's exports and output, while the Policy makers are striving to curb inflationary pressures , where the Bank of Korea announced on January 13 that the monetary policy will aim to stabilize consumer prices gains at 3% over time.
Also, core prices, which exclude energy and food costs, advanced 3.2 percent in January from a year earlier.
Moving to the nation's currency, as the won strengthened by 0.4% to reach the level of$ 1,123.26 and the Kospi stock index gained 0.8 percent.