Bank of Korea: "Inflation Rate Expected to Remain Around 2%... Exchange Rate and Oil Price Volatility Rising"

Price Situation Review Meeting Held
Consumer Price Inflation Rises to 2.1% in September
Impact of Expiration of "Temporary Discount on Telecommunications Fees"

The Bank of Korea analyzed that the consumer price inflation rate rose to 2.1% in September, stating, "The main factor was the expiration of the temporary discount on telecommunications fees." The central bank added that while inflation is expected to remain around 2% going forward, exchange rate and oil price volatility could become variables.

Yonhap News Agency

Kim Woong, Deputy Governor of the Bank of Korea, made these remarks at a "Price Situation Review Meeting" held at the central bank on the morning of October 2.

According to the consumer price trend data released by the National Data Office on the same day, the Consumer Price Index (CPI) for September was 117.06, up 2.1% from the same month last year. The inflation rate, which was 2.1% in July, fell to 1.7% in August, but rebounded in September. The core inflation rate also rose from 1.3% in August to 2.0% in September.

Deputy Governor Kim explained that the renewed increase in consumer prices was "due to the expiration of the temporary discount on telecommunications fees," and assessed that "the inflation rate showed an increase at the 2% level as initially expected."

Regarding the slowdown in the inflation rate for agricultural, livestock, and fisheries products to 1.9% in September from 4.8% in the previous month, he analyzed, "This was due to improved weather conditions and government price stabilization measures, which led to a decline in agricultural product prices."

Deputy Governor Kim stated, "Consumer price inflation is expected to remain around 2% going forward," but added, "Given the increased volatility in exchange rates and oil prices due to external uncertainties such as U.S. tariff policies and geopolitical instability, we will continue to closely monitor the inflation situation."