SEOUL - South Korea's central bank on Thursday warned that consumer inflation could gain traction at a faster-than-expected pace with the ongoing recovery from the pandemic. "Inflation could temporarily increase due to normalization of economic activities with ongoing vaccination, and as pent-up demand shows up," the Bank of Korea (BOK) said in its monetary policy report. South Korea's consumer inflation accelerated to a 13-month high in February on improving domestic demand and rising global oil prices, further signalling a gradual recovery in Asia'sfourth-largest economy. The BOK in February raised this year's inflationoutlook to 1.3% from 1.0% earlier, while keeping the policyinterest rate unchanged at a record low of 0.50%. The BOK also said it will closely monitor local bond yields of long-term maturity and take appropriate measures should volatilities worsen. REUTERS
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