Svmuu News: A survey indicates that South Korea’s overall inflation rate may exceed 3% for the second consecutive month, surpassing the Bank of Korea’s 2% target. The median forecast of seven economists suggests that the benchmark Consumer Price Index (CPI) is expected to rise 3.2% year-over-year in June, up from the 3.1% increase in May; month-over-month, it is expected to rise by 0.1%, compared with a 0.5% increase the previous month.
Ma Tieying, an economist at DBS Group, noted that cumulative increases in raw material costs and the weakening of the South Korean won continue to impact the South Korean economy. She expects the Bank of Korea to raise interest rates once in July and again in the fourth quarter.