S.Korea39;s April CPI 4.8 yryr vs 4.4 expected
April CPI growth hits highest since Oct 2008
S.Korea c.bank seen raising interest rates further
Analysts wait to check demandside trend of inflation

SEOUL, May 3 Reuters South Korea39;s consumer inflation quickened far more than forecast and hit a more than 13year high in April, boosting expectations in the bond market for more central bank interest rate rises this year.

The Statistics Korea data showed the consumer price index CPI rose 4.8 in April from a year before, speeding up from a 4.1 rise in the previous month and far faster than a 4.4 rise tipped in a Reuters survey. 

It even exceeded the highest forecast among the 11 economists in the survey and marked the fastest annual growth since October 2008, while standing above the central bank39;s 2 target for a 13th consecutive month.

The yield on the benchmark 10year treasury bonds rose as much as 5.4 basis points to 3.426, the highest since May 14, 2014, as the inflation data cemented the case for continued policy tightening.

The Bank of Korea BOK convened an internal meeting of officials to review the inflation data and the presiding deputy governor stressed the need for authorities to manage inflation expectations.

Analysts, however, have not as yet adjusted their policy expectations following the data.

We are not changing our view for now as the data shows inflation was led by the supply factors, said Ahn Jaekyun, a fixedincome analyst at Shinhan Financial…