Seoul: Prices of farm produce are expected to rise rapidly due to unfavorable weather conditions, adding to uncertainties surrounding consumer inflation amid external pressures, the central bank said Tuesday.
According to Yonhap News Agency, Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting to review price trends, following government data that showed consumer prices increased 2.1 percent from a year earlier in July. This marked the second consecutive month that inflation has remained above the country's 2 percent target.
Kim stated that recent heavy rains and heat waves are expected to cause a sharp rise in prices of agricultural, livestock, and fisheries products. He warned that consumer price inflation could remain unstable depending on weather conditions, as external uncertainties also remain high. The BOK plans to closely review the inflation path.
However, Kim noted that a significant slowdown in price growth could occur this month, led by planned bill discounts and other services by major mobile carriers. Industry leader SK Telecom Co. has announced that it will offer bill discounts in August and provide free data services through December, following a major data breach case in April.