South Korea’s Consumer Price Index Reaches 13-Year High

According to the Korean Statistics Agency, the consumer price index (CPI) in South Korea rose by 4.8% year-on-year in April. The increase continued after a 4.1% rise in March and the highest level in more than 13 years.

Core inflation (excluding energy and food prices) rose by 3.1% year-on-year in April, after increasing by 2.9% in March, still the highest level since May 2009.

South Korea’s consumer price index was pushed up by a rise in energy and food prices. It is now above the Bank of Korea’s (BOK) 2% target for the 13th consecutive month. As a result, the Bank of Korea is expected to raise interest rates further to curb inflation after announcing only a 0.25% hike to 1.5% at last month’s meeting.

Earlier, the Bank of Korea said that inflation in the country has skyrocketed. The protracted war between Russia and Ukraine has affected the supply chain. As a result, oil and commodity prices have skyrocketed. The Bank of Korea also hinted that interest rates could be raised again in the coming months to control inflation and household debt. Despite fears that the rate hike would hurt economic growth

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