This photo shows customers shopping at a major discount chain store (Image courtesy of Yonhap)
SEOUL, Feb. 5 (Korea Bizwire) - The South Korean central bank said Wednesday that uncertainties remain high regarding prices of global oil and farm produce, the local currency and domestic demand, which could affect inflation down the road.
Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting meant to check prices after government data showed that consumer prices, a key gauge of inflation, rose by the largest margin in six months of 2.2 percent on-year in January.
“Uncertainties remain high regarding the won-dollar exchange rate, global oil prices, domestic demand and prices of agricultural products. Given such factors, the BOK will come up with an adjusted inflation forecast for 2025 later this month,” Kim said.
In its latest forecast presented in November, the BOK projected a 1.9 percent on-year growth in 2025.
“The weak local currency and high oil prices pushed up prices in January, but prices are expected to grow at a slower pace for the time being due to a high base effect and weak demand,” the official added.
The Korean won was quoted at 1,455.79 won per dollar on average in January, which was the second lowest level for any January since 1998.
The average price of Dubai crude, South Korea’s benchmark, jumped to US$80.1 per barrel in January from the previous month’s $73.3, government data showed.
(Yonhap)
