South Korea’s statistics bureau said Wednesday that the consumer price index (CPI) in South Korea rose at a slower pace in September than a year earlier for the second month in a row. This is another sign that inflation in South Korea may have peaked.
The CPI rose 5.6% year-on-year in September, following a 5.7% increase in August.
Month-on-month, the CPI rose by 0.3% in September.
CPI rose above 2% for the 18th consecutive month, the medium-term target of the South Korean central bank (BOK).
“The growth rate of the CPI declined because the price of oil and agricultural commodities such as vegetables and fruits were increased at a slower rate,” said Yeo Wun-san, a senior official at the Korea Statistical Office.
Yeo added that South Korea needs to closely monitor global oil prices. Oil prices could be affected by a possible OPEC oil production cut at its meeting on Wednesday (Oct. 5).
Although oil and agricultural prices slowed the expansion, South Korea may continue to face inflationary pressures as the U.S. dollar strengthens.