Bank of Korea Says Inflation Near 3%
A forecast by the Bank of Korea indicated that following September, the consumer inflation rate will continue at a high level of around 3% in October.Assistant Governor of the Bank of Korea Lee Ji-ho presided over an inflation review meeting at the Bank of Korea on the morning of Oct. 2 and said, “A
The Bank of Korea's forecast predicts consumer inflation will remain high around 3% following September, according to an inflation review meeting held on October 2. Assistant Governor Lee Ji-ho led the discussion and noted that while September's consumer, core, and living prices decreased compared to the previous month, the upward trend in prices has persisted.
This is due to the removal of August's temporary base effect, which previously inflated the rates. The assistant governor explained that the August inflation rates for the consumer, core, and living prices were 0.6%, 0.8%, and 1.1% higher, respectively, due to SK Telecom's 50% reduction in mobile phone fees the previous year.
Lee Ji-ho pointed out that core items experienced price increases, particularly in personal services such as airfares and travel expenses, as a result of cost pressure spillover. Furthermore, the prices of durable goods, including electronic products, also increased due to the rise in semiconductor prices. He reiterated that the consumer inflation rate is expected to continue rising at a high level of around 3% in October, as the upward trend in core items persists.
Lee also predicted that future consumer prices will continue to experience a high upward trend due to the spillover of cost shocks and expanding demand-side pressure, while emphasizing the ongoing uncertainty related to the Middle East conflict. He concluded by stating that the Bank of Korea will closely monitor the inflation situation with vigilance.
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