Price monitoring meeting: 'July inflation likely to ease slightly from June'

Bank of Korea Deputy Governor Lee Ji-ho speaks at a press briefing on the inflation target operating status last month. [Bank of Korea]
Bank of Korea Deputy Governor Lee Ji-ho speaks at a press briefing on the inflation target operating status last month. [Bank of Korea]

By Kim Byeo-ri, The Herald Business

Bank of Korea Deputy Governor Lee Ji-ho forecast Thursday that consumer prices would "remain elevated for now."

Lee convened a price monitoring meeting Thursday morning and said June inflation accelerated from the previous month as "petroleum prices continued to rise sharply and agricultural, livestock and fishery prices climbed more steeply." He added that "the lifestyle price index also continued its steep upward trend in the mid-3 percent range, placing a heavy cost-of-living burden on vulnerable households."

According to the June consumer price trends report released Thursday by the Ministry of Statistics, the consumer price index stood at 119.99 (base year 2020=100) last month, up 3.2 percent from a year earlier. That was the steepest reading in two and a half years, matching the 3.2 percent recorded in December 2023.

On the July outlook, Lee forecast that inflation would "ease slightly from June due to falling international oil prices and the government's price stabilization measures."

Lee went on to say that "consumer price inflation is expected to remain elevated for now, as expanding demand-side pressure driven by economic improvement offsets the downward pressure from falling international oil prices." He added that "core inflation is also expected to stay high due to the pass-through of cost shocks and broadening demand pressure — we will monitor the price situation with heightened vigilance."


kimstar@heraldcorp.com