Morning Meeting to Review Inflation Trends on the 4th
The Bank of Korea forecast on June 4 that the consumer price inflation rate will remain in the upper 1% range in the second half of this year.
Kim Woong, Deputy Governor of the Bank of Korea, presided over a meeting to review the inflation situation that morning and stated, "From the second half of the year, the impact of falling oil prices and weak demand pressure will become more significant," offering this outlook.
Deputy Governor Kim explained, "In May, the decline in prices of agricultural products and petroleum products widened, and the increase in core inflation also slowed." He assessed that "there is a possibility that the inflation rate could rise slightly in June," attributing this to a base effect from last year's declines in agricultural and petroleum product prices.
He added, "We will continue to monitor inflation trends going forward, as risk factors such as exchange rate and oil price volatility stemming from U.S. tariff policies, as well as changes in summer weather conditions, still remain latent."
On the same day, Statistics Korea announced that the Consumer Price Index for May stood at 116.27 (2020=100), up 1.9% from the same month last year. The index fell back to the 1% range for the first time in five months since December of last year (1.9%).
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