South Korea inflation seen nearing 3% in May
South Korea's inflation rate is expected to approach 3% in May due to rising oil prices and base effects from food costs. The consumer price index rose 2.6% in April from a year earlier, the fastest pace in one year and nine months.
South Korea's inflation rate is expected to near 3% in May as rising oil prices and base effects from food costs add upward pressure. In April, consumer prices rose 2.6% from a year earlier, the fastest pace in one year and nine months. Petroleum products accounted for 0.84 percentage points of April's inflation, with diesel prices surging 30.8%. The Bank of Korea's senior deputy governor, Yoo Sang-dae, said oil prices are expected to stay high in May, potentially amplifying overall inflation. The government said its policy measures, including a fuel price cap and fuel tax cuts, helped limit price increases, lowering April inflation by an estimated 1.2 percentage points. Officials acknowledged mounting uncertainty tied to external risks and will maintain an all-agency response to stabilize prices.
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