South Korea Inflation Rate

Consumer prices in South Korea rose 5.4% in May 2022 from a year ago, accelerating at its fastest pace in nearly 14 years, as higher prices of oil and other commodities as well as rising services charges and utility bills continued to add to inflationary pressure. The data followed a 4.8% rise in the previous month and came in above expectations for a 5.1% gain. The country’s inflation rate also held above the central bank’s 2% target for the 14th consecutive month, keeping the pressure on the Bank of Korea to tighten policy further to curb price growth. The BOK raised its benchmark interest rate by 25 basis points to 1.5% in a surprise move in April as it stepped up the fight against rampant inflation. The bank expects inflation to average 4.5% in 2022, higher than its earlier forecast, signaling it would tighten policy further in the coming months.