The central bank has forecast the inflation rate in the country to remain in the five percent range in June and July.
Bank of Korea Senior Deputy Governor Lee Seung-heon explained on Friday that the projection is based on high oil and food prices as well as higher inflationary pressure driven by increasing demand due to the lifting of COVID-19 social distancing rules.
Lee vowed to make an effort to “stably” manage prices and preemptively prevent inflation expectations from growing further.
Earlier in the week, the government rolled out a set of measures to curb inflation and stabilize people’s living conditions, including the temporary removal of import tariffs on key food items such as cooking oil and pork.
According to recent data, the consumer price index rose five-point-four percent in May on-year, the highest in nearly 14 years.
Source: KBS World Radio