Consumer prices to near 2% on weak currency: BOK
Customers shop at the major grocery store in Gangnam, Seoul, Nov. 24. Yonhap
The weak Korean won is projected to impact consumer inflation after December to push the figure to around 2 percent from the current mid-1 percent level, the Bank of Korea (BOK) said Tuesday.
South Korea's consumer inflation rose 1.5 percent in November from a year earlier, accelerating from a 1.3 percent increase in October, according to the data from Statistics Korea.
But the figure stayed below the BOK's target of 2 percent for a third month and picked up less than expected.
"The recent weakening of the won is yet to have affected inflation. We will experience the impact after December," BOK Deputy Gov. Kim Woong said during a meeting meant to check prices.
"Given low-base effects and the strong dollar, consumer prices are forecast to reach 2 percent for the time being, though core inflation is likely to remain stable at the current level," he added.
The central bank last week delivered a surprise policy rate cut and signaled more to come next year, presenting a bleak forecast for economic growth next year on slow export growth and uncertainties from the new Donald Trump administration.
The BOK expected this year's inflation to stand at 2.3 percent and that for next year at 1.9 percent. (Yonhap)