SEOUL : South Korea's central bank said on Monday that upward risks to core inflation were 'a little high' amid strong consumption and employment trends, raising the prospect of higher inflation lasting longer than expected.'While there is high uncertainty regarding global energy prices, domestic and glob
SEOUL : South Korea's central bank said on Monday that upward risks to core inflation were"a little high" amid strong consumption and employment trends, raising the prospect of higher inflation lasting longer than expected.
"If consumption and employment continue their robust trends, spill-over effects from accumulated cost increase pressures on core inflation may last longer than expected," it added. South Korea's consumer inflation slowed to a 19-month low of 3.3 per cent in May, but core inflation remained elevated at 3.9 per cent, staying above the headline figure for the second consecutive month.
Compared with Canada and Australia, whose central banks recently resumed tightening interest rates after some pauses, South Korea's housing and labour markets showed less upward price pressures, the BOK report also noted.
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