Bank of Korea: "If Oil Prices and Exchange Rates Remain Stable, July Inflation Will Rise Less"

Consumer Price Index Rises 2.2% in June
Temporary Surge in Oil Prices and Base Effect from Agricultural, Livestock, and Fisheries Products

The Bank of Korea analyzed that the rise in the consumer price inflation rate in June, compared to the previous month, was due to a temporary surge in oil prices around mid-June and a base effect from agricultural, livestock, and fisheries products.

Yonhap News

On July 2, Kim Woong, Deputy Governor of the Bank of Korea, presided over a meeting to review the inflation situation and explained that these factors were behind the consumer price inflation rate for June (2.2%) returning to the 2% range.

Deputy Governor Kim stated, "If the current stability in international oil prices and exchange rates continues, the increase in consumer prices is expected to narrow in July. Although the inflation rate is likely to fluctuate around 2% in the future, we will continue to closely monitor price trends due to significant uncertainties, such as U.S. tariff policies, the situation in the Middle East, and summer weather conditions, as well as persistently high prices for daily necessities."

According to the consumer price trend report released by Statistics Korea on this day, the consumer price index for June was 116.31 (2020=100), up 2.2% from the same month last year. After dropping to the 1% range in May (1.9%), it returned to the 2% range in just one month.