Bank of Korea: Agricultural, Livestock, and Fisheries Prices Rise Due to Heatwaves and Heavy Rain... Inflation to Be Closely Reviewed in August Outlook

Bank of Korea Holds "Inflation Situation Review Meeting" on the Morning of August 5

"We will closely review the inflation trajectory in the August outlook and announce our findings."

Yonhap News Agency

On August 5, at the Bank of Korea in Jung-gu, Seoul, Kim Ung, Deputy Governor of the Bank of Korea, stated at the 'Inflation Situation Review Meeting' that "the future consumer price inflation rate may continue to see instability in agricultural, livestock, and fisheries product prices depending on weather conditions, and external uncertainties remain significant."

Deputy Governor Kim assessed, "In August, due to the effects of heavy rainfall and heatwaves, prices of agricultural, livestock, and fisheries products are expected to rise sharply. However, there is a possibility that the inflation rate may temporarily drop significantly due to large-scale telecommunications fee discounts by some mobile carriers."

According to the 'July Consumer Price Trends' announced by Statistics Korea on August 5, last month's consumer price index was 116.52 (2020=100), up 2.1% from a year earlier. The consumer price index inflation rate remained in the 2% range from January this year, dropped to 1.9% in May, but has returned to the 2% range for two consecutive months since June.

The July consumer price inflation rate slightly decreased to 2.1% as the increase in agricultural, livestock, and fisheries product prices (2.1%) was offset by a turnaround to a decline in petroleum product prices (-1.0%). Core inflation remained at the same level as the previous month, at 2.0%.