The Bank of Korea: "August Inflation Rise Larger Than Expected... Increased Uncertainty in International Oil Prices"

Citizens shopping at a large supermarket in Seoul Photo by Yonhap News

The Bank of Korea explained that the 3.4% consumer price inflation rate recorded in August "is not significantly different from the forecast made during the August economic outlook, but the recent rapid rise in petroleum and agricultural product prices has somewhat increased the rate of inflation."

On the morning of the 5th, the Bank of Korea held a 'Price Situation Review Meeting' chaired by Deputy Governor Kim Woong to assess the recent price situation and future price trends.

According to Statistics Korea on that day, the year-on-year consumer price inflation rate had decreased to the 2% range in June and July but rebounded to 3.4% last month.

The Bank of Korea expects the consumer price inflation rate for September to be similar to or slightly higher than that of August.

However, from October onwards, the upward trend in personal service prices is expected to slow down, and agricultural product prices are anticipated to stabilize seasonally, fluctuating around 3%.

Nevertheless, the Bank of Korea explained that uncertainties related to future international oil price trends remain significant.

Regarding the core inflation rate in August, which remained at the same level as the previous month (3.3%), the Bank of Korea analyzed that "the underlying slowing trend is continuing."