In its said in its biannual review of inflation conditions on Monday, the Bank of Korea (BoK), upward risks to core inflation 'a little high'.
Additional takeaways
"While there is high uncertainty regarding global energy prices, domestic and global economic growth and public price hikes over the future inflation path, upward risks are assessed to be a little high when it comes to the outlook on core inflation.”
"If consumption and employment continue their robust trends, spill-over effects from accumulated cost increase pressures on core inflation may last longer than expected.”
“The BoK expects core prices will rise 3.3% this year, it said last month when it raised a February estimate of 3.0%. Overall consumer prices are expected to rise 3.5%.”
Meanwhile, Governor Rhee Chang-yong said that the central bank “will need to respond if inflation deviates signficantly from expected path in H2, but no sign yet.:
“It is too early to discuss rate cut,” Rhee added.
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