Bank of Korea Projects Slowdown in Inflation Rate

Following a temporary spike in oil prices, the Bank of Korea has indicated that while consumer prices saw a significant increase in June, this trend is expected to decelerate in July.

Recent Inflation Trends

Statistics Korea reported a 2.2% rise in consumer prices compared to the previous year, marking the highest rate since January. Deputy Governor Kim Woong attributed this increase to the base effect from last year and a temporary expansion in the prices of agricultural, livestock, fishery, and petroleum products.

Future Projections

Kim Woong expressed optimism about the stabilization of international oil prices and exchange rates, suggesting a potential slowdown in the inflation rate. However, he cautioned about uncertainties such as U.S. tariff policies, the Middle East situation, and summer weather conditions that could impact future price trends.