South Korea central bank says inflation to reach about 2% by end-2024

SOUTH Korea’s consumer inflation is expected to ease towards a 2 per cent medium-term target level by the end of 2024, the country’s central bank said on Wednesday (Dec 20).

“Going forward, the inflation rate will ease unless oil price rises significantly and as shocks from supply-side diminishes, but the pace of that will be gradual,” the Bank of Korea (BOK) said in its biannual review of inflation conditions.

The BOK’s minutes from the Nov 30 rate decision meeting showed the majority of the bank’s seven board members maintained a hawkish stance despite keeping rates paused, with some members arguing additional increases may be necessary if inflation proves to be stickier than expected.

South Korea’s year-on-year inflation eased to 3.3 per cent for the first time in four months in November, bringing relief to policymakers worried about persistent inflation risks as they plan to keep their restrictive monetary policy in place for longer. REUTERS