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(Seoul=NSP NEWS AGENCY) = Due to rising oil prices, the consumer price inflation rate last month was 1.5%, up 0.27%p from the previous month. The Bank of Korea is forecasting that prices will approach 2% from December onwards due to the impact of the rising exchange rate.

According to the Bank of Korea on the 3rd, the consumer price inflation rate in November was 1.5%, up from the previous month(1.3%). This is because the slowdown in petroleum prices expanded from -7.6% in September to -10.9% in October due to the base effect of the international oil price decline and the fuel tax cut, and then narrowed significantly to -5.3% last month. The contribution of petroleum to consumer prices increased by 0.24%p from the previous month to 88.9%.

The Deputy Governor of the Bank of Korea said, “The consumer price inflation rate in November rose to the mid-1% range due to the base effect of the decline in oil prices at the end of last year and the reduced fuel tax cut rate.” He added, “Although the inflation rate has recently risen, considering the time lag, the impact of the exchange rate rise on prices is still limited and is expected to appear after December.”

He continued, “Going forward, the consumer price inflation rate is expected to remain close to 2% for the time being due to the base effect and the rise in the exchange rate, and core prices are expected to remain stable at the current level.” He added, “The future price outlook path is expected to be affected by trends in the exchange rate and oil prices, domestic demand, and public utility rate adjustments. We also need to pay attention to the price ripple effects of corporate price adjustments at the end and beginning of the year.”

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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