Weak Korean Won to Drive Consumer Prices Near 2 Percent, Says BOK.

Seoul: The Bank of Korea (BOK) has projected that the weakening Korean won will influence consumer inflation, potentially pushing the rate to approximately 2 percent after December. This represents an increase from the current mid-1 percent level, as the BOK announced on Tuesday.According to Yonhap News Agency, South Korea's consumer inflation saw an increase of 1.5 percent in November compared to the previous year, up from a 1.3 percent rise in October, as reported by Statistics Korea. However, the inflation rate has remained below the BOK's target of 2 percent for the third consecutive month and has not reached anticipated levels.BOK Deputy Governor Kim Woong stated during a price check meeting, "The recent weakening of the won is yet to have affected inflation. We will experience the impact after December." He further noted, "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 l evel."Last week, the central bank unexpectedly cut the policy rate and hinted at further reductions next year, outlining a grim economic growth forecast due to slow export growth and uncertainties related to the new Donald Trump administration. The BOK anticipates this year's inflation to settle at 2.3 percent, with next year's forecast slightly lower at 1.9 percent.