South Korea's Inflation Trends and Bank of Korea's Strategies

9 months ago

Barclays economist Bum Ki Son has indicated that South Korea's consumer inflation is likely to increase in December following a lower-than-expected growth in November. This potential rise in inflation for two consecutive months could lead the Bank of Korea to pause its interest rate cuts in January.

In November, the benchmark consumer price index rose by 1.5% compared to the same period last year, which was an increase from October's 1.3% rise but fell short of the market's median expectation of 1.7%. Despite this increase, the inflation rate remains below the Bank of Korea's annual target of 2%.

Bum Ki Son anticipates that the central bank will resume rate cuts in February, May, and October..