BOK Governor: Consumer Prices Expected to Maintain High Growth for Considerable Time

Bank of Korea (BOK) Governor Shin Hyun-song stated today (June 17) that "consumer prices are expected to continue their high growth trend for a considerable period."

During his opening remarks at a press conference held at the BOK this afternoon to review the operation of inflation targeting, Governor Shin said, "It appears it will take a long time for energy supply chains to normalize to pre-Middle East war levels and for international oil prices to stabilize."

He explained, "The impact of high oil prices could spill over not only into energy but also into other items," adding that "demand-side pressure is also expected to gradually increase due to the recovery of the domestic economy."

He further added, "There is also a concern that wage increases could further heighten upward pressure on prices from both cost and demand perspectives."

Governor Shin noted, "Following the surge in international oil prices after the Middle East war, petroleum prices have risen by more than 20%, and core inflation has also climbed to the mid-2% range." He continued, "In particular, the cost of living as felt by the public is showing a higher growth rate than the overall consumer price index, increasing the burden on the livelihoods of low-income households."

He emphasized, "The Bank of Korea is acutely aware that rising prices can increase the economic burden on the public," and added, "We will closely monitor future price trends and respond actively until we are confident that inflation will stabilize at the target level."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.