Inflation is accelerating in Asia, according to June figures released on Tuesday by four countries, raising the likelihood that central banks will be obliged to increase interest rates in spite of rising fears of slowing growth.

With signs that an economic slowdown may already be taking place, South Korea’s central bank cut its 2008 growth forecast to 4.6 per cent – well below the 6 per cent promised by President Lee Myung-bak when he took office in February.