The Bank of Korea: "Core inflation rising... Consumer prices to remain in the 5-6% range for a considerable period"

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] With the consumer price inflation rate reaching 5.7% in August, the Bank of Korea forecasted that consumer prices would continue to rise at a high rate of 5-6% for a considerable period.

On the morning of the 2nd, the Bank of Korea held a "Price Situation Review Meeting" chaired by Deputy Governor Lee Hwan-seok in the 15th-floor conference room of the main building, where they reviewed recent price trends and future price movements before making this announcement.

Deputy Governor Lee Hwan-seok explained, "The consumer price inflation rate in August (5.7%) fell significantly below 6% compared to July (6.3%) due to a sharp decline in petroleum prices," adding, "This level aligns with the expectations at last week's Monetary Policy Committee meeting."

However, Deputy Governor Lee noted, "Core inflation rose slightly from 3.9% in July to 4.0% in August as demand-side inflationary pressures continued, with an increase mainly centered on personal service items such as dining out," and predicted, "consumer prices are expected to maintain a high upward trend of 5-6% for a considerable period."

He added, "There remains a high level of uncertainty regarding the future inflation outlook due to factors such as the developments in the Ukraine situation, trends in international oil prices, and weather conditions."

Attendees of the meeting included Deputy Governor Lee Hwan-seok, the Director of the Research Department, the Director of the Economic Statistics Department, the Head of the Price Analysis Division, the Deputy Public Relations Officer, the Head of the Research Coordination Team, and the Head of the Price Trends Team.