Bank of Korea "April Inflation Rate in Line with Expectations, Slowdown to Continue"

Bank of Korea Holds Inflation Situation Review Meeting

The Bank of Korea evaluated that the consumer price inflation rate in April met expectations. It also forecasted that the trend of slowing inflation would continue going forward.

On the morning of the 2nd, 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.

On the same day, Statistics Korea announced that the consumer price inflation rate in South Korea last month was 2.9%. The inflation rate had recorded 2.8% in January and 3.1% consecutively in February and March, before falling below 3% for the first time in three months.

Deputy Governor Kim said, "The consumer price inflation rate has decreased from the low 3% range to the high 2% range," adding, "Although petroleum prices continued to rise, the slowdown in the inflation rates of agricultural, livestock, and fishery products as well as personal service prices mainly contributed to this."

He emphasized, "The degree of inflation slowdown in April was in line with initial expectations," and added, "Going forward, the consumer price inflation rate is expected to show a deceleration trend centered on core inflation, but there remains significant uncertainty related to factors such as oil price trends depending on the development of geopolitical risks and the duration of strong agricultural product prices."

He continued, "In the May economic outlook, we will closely examine and announce the impact of recent Middle East developments, domestic demand trends, and the extent of companies' price increase movements on the future inflation path."