Attention on 4% Inflation Increase... Impact of Ukraine War

Interest in Whether Foreign Exchange Reserves Will Decrease by Late April and Finance Minister Choo Kyung-ho's Confirmation Hearing

Soybean oil also reaches an all-time high price

[Asia Economy Intern Reporter Kim Nayeon] Attention is focused on how much more South Korea's inflation, which entered the 4% range due to the aftermath of the Russia-Ukraine war, rose in April.

Amid the strong dollar, interest also centers on whether foreign exchange reserves decreased at the end of April and the confirmation hearing for Choo Kyung-ho, the nominee for Deputy Prime Minister and Minister of Economy and Finance.

According to related ministries on the 30th, Statistics Korea will announce the consumer price trends for April on the 3rd of next month.

The consumer price index rose 4.1% in March, marking 4% for the first time in 10 years and 3 months since December 2011 (4.2%).

Statistics Korea previously warned, "There is a concern that external inflationary pressures may worsen due to the Russia-Ukraine war," adding, "The upward trend is unlikely to slow down significantly for the time being."

The Bank of Korea will announce the foreign exchange reserves as of the end of April on the 4th of next month.

As of the end of March, South Korea's foreign exchange reserves stood at $457.81 billion, down $3.96 billion from the end of February ($461.77 billion). This was due to the strong dollar (rise in dollar value) reducing the dollar-converted value of other currency foreign assets, as well as foreign exchange market volatility mitigation measures (market intervention).

Since the won/dollar exchange rate continued to rise in April due to the strong dollar, attention is on whether foreign exchange reserves decreased further.

Additionally, the National Assembly will hold a confirmation hearing for Choo Kyung-ho, the nominee for Deputy Prime Minister and Minister of Economy and Finance, on the 2nd of next month.

Questions are expected regarding the supplementary budget for compensation of small business losses, real estate policy directions, and measures to alleviate inflation burdens for public stability.

Furthermore, the Bank of Korea will disclose the minutes of the Monetary Policy Board meeting held on April 14 on the 3rd of next month.

At that meeting, contrary to market expectations, the Monetary Policy Board decided to raise the rate by 0.25 percentage points (p). Through the minutes, it will be possible to infer the grounds on which the board members supported the hike and the likely pace and extent of future increases.

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