SEOUL, Feb. 6 (UPI) -- South Korea recorded one of the world's highest consumer inflation rates last year, the Korea Times reported Sunday.
The rate, brought about by soaring prices for raw materials and high labor costs, was 3.6 percent during 2004, 1.4 times greater than the 2.5 percent average among 30 members of the Organization for Economic Cooperation and Development, South Korea's National Statistical Office said.
The pace is well above the average of 2.2 percent for seven major OECD countries, including the United States and Japan. Among major Asian nations, Korea ranked third, just behind China's 3.9 percent and India's 3.8 percent.
Taiwan and Singapore registered 1.6 percent and 1.7 percent, in that order, while prices in Singapore decreased .4 percent.
A recent Bank of Korea report said South Korea is vulnerable to high inflation due to a costly economic structure caused by elevated wages, high dependence on imported raw materials, and a complicated distribution system.
