South Korea’s annual inflation eased to 2.8% in October, but the Bank of Korea expects price growth to remain in the high 2% range this month, keeping it above the bank’s 2% target.
Government figures released Tuesday put October’s annual consumer inflation at 2.8%, after 2.9% in September and 3.1% in August. Prices excluding volatile food and energy were also 2.8% higher than a year earlier. Both measures remained above the central bank’s target.
Deputy Gov. Lee Ji-ho said stronger agricultural shipments helped moderate October’s inflation pace. He said prices for private services and durable goods remained elevated. Lee projected inflation in the high 2% range for November, pointing to global oil prices and further increases in core prices.
Year-over-year prices for agricultural, livestock and fishery products fell 1.7%, while petroleum product prices rose 14.9%. The Bank of Korea said inflation also faced pressure from both rising costs and demand, with uncertainty in the Middle East weighing on its outlook.
Inflation has been part of the bank’s policy considerations alongside housing debt. The Bank of Korea held its benchmark rate at 3% while weighing above-target inflation and housing-debt risks, as described in EconoTimes’ earlier report on the rate decision.
