Seoul: The weak Korean won is projected to impact consumer inflation after December, potentially increasing the figure to around 2 percent from the current mid-1 percent level, the Bank of Korea (BOK) announced on Tuesday.
According to Emirates News Agency, Korea’s consumer inflation rose 1.5 percent in November compared to the previous year, marking an acceleration from the 1.3 percent increase observed in October, as reported by Statistics Korea. However, this figure remained below the BOK’s target of 2 percent for the third consecutive month and was lower than anticipated.
The Bank of Korea had initially projected this year’s inflation to reach 2.3 percent and forecasted next year’s rate at 1.9 percent. The recent developments indicate that the weaker Korean won may play a significant role in pushing consumer prices closer to the central bank’s target, affecting economic assessments and policy decisions in the coming months.