Bank of Korea: "Need to Monitor Impact of Elevated Exchange Rate on Inflation"

Inflation Review Meeting Held on December 2... Consumer Price Index Rises 2.4% for Second Month
"As the Cost of Living Remains High, We Will Closely Monitor Future Inflation Trends"

"It is necessary to continue monitoring the potential impact of the elevated exchange rate on future inflation."

Kim Woong, Deputy Governor of the Bank of Korea. Yonhap News Agency

On December 2, Kim Woong, Deputy Governor of the Bank of Korea, held a meeting at the Bank of Korea to review the inflation situation. He stated, "As the consumer price index has recorded a mid-2% increase for two consecutive months and the cost of living index also remains high, we will closely monitor future inflation trends with a heightened sense of caution."

Deputy Governor Kim explained, "While prices for travel-related services declined as expected, the continued strength in petroleum prices and a significant increase in agricultural, livestock, and fisheries products led to a 2.4% rise in the consumer price index, the same as the previous month. The core inflation rate fell from 2.2% to 2.0% as prices for travel-related personal services stabilized again."

He continued, "With core inflation showing renewed stability and the upward trend in agricultural, livestock, and fisheries product prices easing, we expect the consumer price inflation rate to gradually decline to around 2% going forward. However, it is necessary to continue monitoring the potential impact of the elevated exchange rate on future inflation," he added.

On this day, the National Data Office announced that last month’s consumer price index stood at 117.20 (2020=100), up 2.4% from a year earlier. This is the same rate of increase as recorded in October.