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October Inflation Rate 3.8%...Bank of Korea “Exceeding Price Outlook”

NSP NEWS AGENCY, By Soon-ki Lee and Soo-in Kang, 2023-11-02 16:36 ENX7
#BOK #InflationRate

(Seoul=NSP NEWS AGENCY) = The consumer price inflation rate last month(year-on-year) was 3.8%, up 0.1 percentage points compared to September. In this regard, as the BOK expressed the opinion that “future price flow will exceed the August forecast path,” there are predictions that consumer prices could rise to the 4% level by the end of the year.

On the 2nd, the Deputy Governor of the BOK explained, “Consumer prices in October widened slightly from the previous month as international oil prices remained at a high level since September, while agricultural prices, which had fallen significantly after Chuseok, remained at an unusually high level.”

The consumer price inflation rate rose from 3.4% in August to 3.7% in September and 3.8% in October. Agricultural prices remained high even after Chuseok, with increases of 5.4% in August, 7.2% in September, and 13.5% in October.

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The core inflation rate decreased slightly from 3.3% in September to 3.2% in October. This is because personal service prices continued to slow despite the expansion of public service prices due to the increase in public transportation fees in the metropolitan area and Busan.

"Going forward, inflation is expected to remain above the path forecast in August, given the recent increase in oil and agricultural prices, as well as uncertainties regarding the evolution of the Israeli-Hamas conflict and subsequent oil price trend and domestic and international economic trend,” the deputy governor said.

In its ‘Revised Economic Outlook’ last August, the BOK predicted the consumer price increase rate to be 3.5% and 2.4% for this year and next year, respectively.

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