Seoul: Inflation is projected to remain stable, but uncertainties remain high given the United States' tariff policy, the Middle East situation and seasonal weather conditions, the central bank said Wednesday.
According to Yonhap News Agency, Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting to review inflationary trends, following government data that showed consumer prices gained 2.2 percent from a year earlier in June, logging the steepest on-year increase since January.
"The acceleration was due mainly to a temporary surge in oil prices and low base effects from agricultural and fisheries products. If the recent stability in global oil prices and won-dollar exchange rates continues, the pace of consumer price increases is expected to ease in July," Kim said.
"Going forward, the inflation rate is expected to fluctuate around the 2 percent level. But we will continue to closely monitor inflation developments given the significant uncertainties surrounding U.S. tariff policies, geopolitical tensions in the Middle East and summer weather conditions," he added.
The BOK forecast consumer prices to increase by 1.9 percent this year and 1.8 percent in 2026.