The Bank of Korea Indicates Possibility of Annual Consumer Price Inflation Exceeding 2.3%

Announcement on the Evaluation of Recent Consumer Price Trends

[Asia Economy Reporter Jang Sehee] The Bank of Korea announced on the 2nd that the annual inflation rate for this year is likely to slightly exceed the November forecast level (2.3%) as the inflation rate in November surpassed the expected level at the time of last month's forecast.

On the same day, the Bank of Korea released a report titled 'Assessment of Recent Consumer Price Trends,' stating, "As the inflation rate in November exceeded the expected level at the time of last month's forecast, the annual inflation rate for this year is likely to slightly exceed the November forecast level of 2.3%."

The Bank of Korea added, "Considering recent international oil price trends and the effects of the fuel tax reduction, the consumer price inflation rate is expected to gradually slow down," but also noted, "Due to expanding demand-side inflationary pressures and the impact of supply bottlenecks, it is expected to exceed the target level for a considerable period."

Furthermore, the Bank of Korea stated that it is closely monitoring inflation trends. It said, "Uncertainty regarding future price trends has increased due to recent volatility in international oil prices. If global supply bottlenecks worsen and prolong, inflationary pressures could widely spread domestically as well, so we will closely watch future inflation trends."

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