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SEOUL, May 1 (Reuters) South Korean exports and consumer prices rose at a slower-than-expected annual pace in April, data showed on Monday, hit by a firm won and reinforcing speculation the central bank will not rush to raise interest rates.
Exports from Asia's fourth-largest economy in April rose 12.7 percent from a year earlier, short of expectations for a 13.6 percent increase.
The consumer price index grew 2.0 percent from a year earlier, less than a 2.3 percent rise expected by a Reuters poll.
''The firm won is keeping a lid on inflation and making exports difficult. Considering this, the central bank will not be in a hurry to raise rates,'' said Goh You-sun, an economist at Daewoo Securities.
The Bank of Korea next reviews interest rates on May 11.
Policy makers have been concerned that a sharp rise in the won to more than eight-year highs against the dollar and the yen would undermine the country's exports, which have been the main driver of growth in recent years.
April's exports were a provisional $25.77 billion on a customs clearance basis. The figures showed annual exports growth was double digit for the third consecutive month.
Imports rose 14.0 percent from a year earlier to $24.23 billion, producing a trade surplus of $1.545 billion, the commerce ministry said in a statement.
The surplus in April 2005 was $1.63 billion.
The commerce ministry said the won's rally was the main risk facing exports, although it retained a growth forecast that shipments abroad this year would slow to 11.8 percent from 12.0 percent in 2005.
CHINA CURRENCY, RATES It added high oil prices and a potential rise in the yuan against the dollar could also hurt demand for South Korean goods from major economies, including China.
Exporters were already suffering a squeeze on profits due to the high won and oil price, although total exports were sustaining growth, a Korean industry association said on Monday.
Exporters' profitability -- comparing changes in production costs against export prices -- were 7.1 percent lower in the first quarter than a year earlier, the sixth consecutive quarter of decline, the Korea International Trade Association said.
The finance ministry said last week's increase in China's official lending rate would not impact South Korea's exports to its giant neighbour, which takes a fifth of Korea's goods sold abroad.
''Our exports to China are influenced more by the world economy's growth than the Chinese economy because most of them are raw materials and capital goods for use by manufacturers for China's exports,'' the finance ministry said in a statement.
South Korean government officials have recently voiced concern about the won's rise, and dealers suspect the government bought billions of dollars this month to calm its ascent.
The won has gained 7 percent against the dollar so far this year, outpacing the yen's 4 percent rise versus the U.S. unit.
The National Statistical Office's consumer price data also showed April's annual core inflation rate, which strips out food and fuel prices, was unchanged from March at 1.6 percent, well under the central bank's target of keeping core inflation between 2.5 percent and 3.5 percent.
REUTERS PV DS1200