Bank of Korea calls inflation a worry

SEOUL, Oct. 18 (UPI) -- Bank of Korea Gov. Kim Choong-soo said price inflation for 2010 in South Korea would reach 2.9 percent , slightly higher than previously predicted.

The bank had predicted inflation would rise 2.8 percent in 2010. But, as the rate rises, Kim said inflation "for the fourth quarter and next year is worrisome."

Next year, the BOK said, prices would rise 3.4 percent.

The bank's target rate for inflation is 3 percent.

For 2011, Kim said, the annual economic growth rate forecast "currently stands at 4.5 percent, but there may be a 0.1 percent to 0.2 percent point gap."