The Bank of Korea said May consumer inflation is likely to pick up further as petroleum product prices stay elevated and base effects from agricultural, livestock and fisheries items add upward pressure.
Senior Deputy Gov. Yoo Sang-dae said at an inflation review meeting Tuesday at the central bank’s headquarters in Jung-gu, Seoul, that “May prices will rise more as petroleum product prices remain high and base effects from agricultural, livestock and fisheries prices are added.”
The National Data Center said the consumer price index in April rose 2.6% from a year earlier, the biggest increase in 1 year and 9 months. Petroleum products jumped 21.9% as global oil prices climbed, while agricultural, livestock and fisheries products fell 0.5% as shipments of major farm goods increased.
Yoo said April inflation accelerated from the previous month as petroleum product prices surged on a sharp rise in global oil prices. He added that government measures to stabilize prices — including a cap on maximum oil prices and cuts to fuel taxes — were estimated to have cushioned much of the shock.
He said the inflation outlook remains highly uncertain, citing developments in the Middle East, the resulting path of oil prices and the risk of spillover beyond petroleum products. “We will stay vigilant and closely monitor price conditions,” he said.
Senior Deputy Gov. Yoo Sang-dae said at an inflation review meeting Tuesday at the central bank’s headquarters in Jung-gu, Seoul, that “May prices will rise more as petroleum product prices remain high and base effects from agricultural, livestock and fisheries prices are added.”
The National Data Center said the consumer price index in April rose 2.6% from a year earlier, the biggest increase in 1 year and 9 months. Petroleum products jumped 21.9% as global oil prices climbed, while agricultural, livestock and fisheries products fell 0.5% as shipments of major farm goods increased.
Yoo said April inflation accelerated from the previous month as petroleum product prices surged on a sharp rise in global oil prices. He added that government measures to stabilize prices — including a cap on maximum oil prices and cuts to fuel taxes — were estimated to have cushioned much of the shock.
He said the inflation outlook remains highly uncertain, citing developments in the Middle East, the resulting path of oil prices and the risk of spillover beyond petroleum products. “We will stay vigilant and closely monitor price conditions,” he said.
* This article has been translated by AI.
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