The Bank of Korea: "Inflation Rate to Rise Again from August, Fluctuating Around 3% Until Year-End"

Holding a Meeting to Review the Price Situation

[Image source=Yonhap News]

The Bank of Korea stated that the consumer price inflation rate in July remained in the 2% range following the previous month, but is expected to rise again from August and fluctuate around 3% until the end of the year.

On the morning of the 2nd, the Bank held a 'Price Situation Review Meeting' chaired by Deputy Governor Kim Woong on the 16th floor conference room of the main building to assess the recent price situation and future price trends, revealing these projections.

Deputy Governor Kim Woong evaluated, "Despite the impact of heavy rains in July, the consumer price inflation rate continued its expected slowdown trend due to the base effect. The core inflation rate (excluding food and energy) also showed a gradual slowdown as the increase in personal service prices gradually narrowed."

He added that although the consumer price inflation rate in July recorded 2.3%, the lowest in 25 months, it is expected to rise again in August and fluctuate around 3% until the end of the year.

Deputy Governor Kim said, "The core inflation rate is expected to slightly exceed the May forecast (annual 3.3%) while showing a gradual slowdown trend. There remains high uncertainty regarding future price paths related to international oil price trends, weather conditions, and domestic and international economic flows."