Bank of Korea: "This Year's Inflation Rate Will Exceed 2.1%"

Evaluation of the Recent Price Situation on the 2nd

[Asia Economy Reporter Jang Sehee] The Bank of Korea expects the annual consumer price inflation rate this year to exceed the previous forecast of 2.1%.

On the 2nd, the Bank of Korea released a report titled 'Assessment of Recent Inflation Situation,' stating, "The consumer price inflation rate in the fourth quarter of this year is expected to be higher than the previous quarter's 2.6%, resulting in an annual inflation rate that surpasses the August forecast level of 2.1%."

The Bank of Korea initially projected this year's inflation rate at 1.8%, then revised it upward to 2.1% in August. According to the Statistics Korea announcement on the same day, the consumer price index in October rose by 3.2% compared to the same month last year, marking the first time in 9 years and 8 months since February 2012, when it recorded a 3.0% increase.

The Bank of Korea stated, "Going forward, the inflation rate will gradually slow down as the base effect from the government's telecommunications fee support in October last year disappears and the fuel tax reduction measures are implemented," adding, "However, the rate will continue to significantly exceed 2% for the time being."

Additionally, it forecasted that the monthly inflation rate would decrease by 0.2 to 0.3 percentage points due to the government's fuel tax reduction policy. The effects of the fuel tax reduction policy are expected to appear starting in December.

This content was produced with the assistance of AI translation services.