The Bank of Korea announced on June 2 that it expects the inflation rate to remain around 3% for the time being.
Lee Ji-ho, head of the Bank's Economic Research Department, made the statement during a morning meeting to assess the inflation situation. He noted that the impact of rising oil prices is gradually spreading to other sectors.
He added, "While there is significant uncertainty regarding the trajectory of inflation due to developments in the Middle East and the resulting oil price fluctuations, we will closely monitor the situation with vigilance."
According to the data released, consumer prices in May rose by 3.1% compared to the same month last year, an increase from the 2.6% rise in April. Oil prices surged by 24.2% year-on-year, while prices for agricultural, livestock, and fishery products increased by 2.2%. Core inflation stood at 2.5%.
Lee assessed that the rise in consumer prices in May was significantly influenced by the increased oil prices and higher service costs, particularly in travel-related sectors such as domestic and international airfares.
He also projected that the inflation rate in June would remain similar to that of May due to sustained high oil price increases.
* This article has been translated by AI.
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