Inflation expected to remain stable at around 2% despite uncertainties: BOK
Building of the Bank of Korea in Seoul, March 30, 2023 / Korea Times file
Korea's consumer inflation is expected to remain stable around the target rate of 2 percent, though close monitoring is required amid persistent uncertainties at home and abroad, the central bank said Wednesday.
Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting meant to review price trends, after government data showed that consumer prices, a key gauge of inflation, rose 2.1 percent from a year earlier in March, accelerating from 2.0 percent in February.
The increase was partly attributed to the weakening of the Korean won, which raised import costs, as well as rising prices of processed food items and college tuition fees.
"Going forward, consumer prices are expected to remain stable near the target level, as the won-dollar exchange rate and other upward factors are likely to offset downward pressures, such as weak domestic demand," Kim said.
"Given continued uncertainties surrounding the exchange rate, global oil prices and domestic demand, it is essential to closely monitor future inflation developments," he added.
The BOK projected 1.9 percent price growth in 2025 in its latest forecast. (Yonhap)