South Korean inflation reached an 11-month low
reported by Mehr News Agency, according to the South Korea Statistics Center, the consumer price index in this country increased by 2.4% more than last year in June, which is slower than the 2.7% growth in the month of May and it was the weakest growth since July 2023. This figure was also much lower than the average growth of 2.7 percent in the Reuters poll.
The country’s deputy finance minister said that consumer inflation is expected to stabilize at a low to moderate level of 2 percent in the second half of this year and pledged to continue policy measures to control prices.
The Central Bank of South Korea also stated in its assessment that it sees positive the fact that inflation has reached an average level of 2% and will be careful that inflation remains converging with its 2% target. .
The index fell 0.2 percent month-on-month after growing 0.1 percent in the previous month, marking the first decline in seven months. By product, prices of agricultural commodities fell 5.3 percent during the month, while petroleum commodities fell 2.9 percent, leading to a decline in the index.
Ree Chang Yong, Bank President The central bank said last month that the slowdown in consumer inflation is likely to continue, meeting expectations for the central bank to cut interest rates later this year. South Korea’s central bank extended its interest rate hike freeze for the 11th consecutive session in May. The next meeting of the bank will be held on July 11.
The core consumer price index, excluding volatile food and energy items, was 2.2 percent higher in June than the same time last year, in line with the month May has been.
