According to the NSO, the consumer price index jumped 5.9 percent on-year last month up, compared with 5.2 percent gain in June, and posted the biggest rise since November 1998 when the rate reached 6.8 percent.

    The annual gain in July surpassed the South Korean central bank’s target range of 2.5-3.5, the NSO said

    "High oil and other commodities prices translated into high consumer costs, which seemed to be driving up overall inflation," said Lee Sung-kwon, an analyst at Good morning Shinhan Securities.

    "Though crude price hikes show signs of abating, recent price declines will take some months to be reflected in the figures."

    U.S. crude futures traded at 124.08 U.S. dollars per barrel on Thursday, rising more than 60 percent compared from a year ago, Yonhap reported.

    South Korea’s trade deficit reached 1.62 billion U.S. dollars in July, posting a deficit for two straight months as the country relies entirely on imports for its energy consumption, said Yonhap.

    Rising inflation has also affected the country’s economic growth, Yonhap said.

    South Korea has expanded 4.8 percent on-year in the second quarter, the lowest since the first quarter of 2007 and far lower than the government’s annual growth target of 6 percent, according to Yonhap.

    Lee Sung-Kwon said runaway inflation could put more pressure on the South Korea’s central bank to increase its key interest rate this month in order to curb spiraling prices, though a rate hike could dampen the already-slowing Korean economy.

    "Considering rising inflation, the BOK might be under more pressure to take action," Lee said. "But other data such as sluggish consumer sales and a stagnant economic growth outlook will make it tough to make a rate hike for the time being.

    JAKARTA, Aug. 2 (Xinhua) — The regional unit of top Internet portal Yahoo is looking for new Indonesian partners to help expand its market in the country, the Jakarta Post reported Saturday.

    "The company needed new partners to lure more internet users to boost revenue from advertisement," the daily quoted senior director of business development at Yahoo! Southeast Asia Pontus Sonnerstedt, as saying.

    The Singapore-based unit of the Internet giant has been working on improving its content in conjunction with several local players, including news, cellular phone and advertisement companies.

    So far, the company had also been collaborating with local mobile phone partners Telkomsel, Indosat, Excelcomindo and Hutch 3to provide news and messaging services on cellular phones.

    "Indonesia is a promising market thanks to its large population," he said.

  　GAZA, Aug. 2 (Xinhua) — Minister of interior in the deposed Hams-led government in Gaza Said Siam announced on Saturday that the security operation carried out against the pro-rival Fatah movement Helles clan in eastern Gaza city is over.

    Siam told a news conference held in Gaza at the end of Hamas security forces’ security operation that Helles clan’s members violated the law and his police detained several suspects.

    Palestinian witnesses said that more than 120 members of the Helles clan fled their homes and went to the border between eastern Gaza city and Israel after Hamas security forces took control of Sheja’eya neighborhood, where Helles clans live.

    "We will not let any family or clan to be above the law. Gaza from now and further will be safe," Siam told reporters, adding that the suspects who were detained will be taken to court and thelaw will be implemented.

    Palestinian sources said that senior Fatah leader Ahmed Helles, better known as Abu Maher and dozens of his clan’s members escaped from their homes and went to the borders’ area between Gaza and Israel.

    The sources told the local news agency "Ramattan" in Gaza that 120 people, who escaped after several hours of fighting in the neighborhood between Hamas police and Helles clan’s militants, managed to cross the borders between Gaza and Israel.

    The sources added that the fleeing members of Helles clan will arrive in Ramallah through Israel. Their entrance was coordinated between Israel and the office of Palestinian President Mahmoud Abbas.

    Earlier on Saturday, Hamas security forces and Hamas armed wingal-Qassam Brigades stormed Sheja’eya neighborhood to search for suspects involved in a July 25 attack on a Hamas car in Gaza that killed six people.

    Heavy fighting erupted in the area and lasted for several hours, said Palestinian residents in the area. Palestinian medical sources said that four Palestinians were killed and 80 wounded.

    The Hamas-ruled ministry of interior announced in a statement that the operation against Helles clan is over, adding that several suspects were arrested, while explosives, bombs and weapons were discovered.