With last month's consumer price inflation hitting a record high for the first time in 1 year and 3 months, the Bank of Korea (BOK) projected that the year-end inflation rate will stabilize around 2%.
Vice Governor Kim Ung of the Bank of Korea said on Nov. 4 in the morning at the BOK after convening a meeting to review price conditions, "Considering lower oil prices than last year and the outlook for a slowdown in travel service prices, the consumer price inflation rate will gradually decline," and stated accordingly. The meeting was attended by Kim, along with the director general of the research department, the director general of economic statistics department 1, the head of macroeconomic forecasting, and the head of prices and employment.
According to the consumer price trends for October released that day by the National Data Office, the consumer price index for October was 117.42 (2020=100), up 2.4% from a year earlier. The inflation rate was the highest in 1 year and 3 months since July last year (2.6%).
Regarding this, Vice Governor Kim explained, "Agricultural product prices were higher than expected," and noted, "With domestic and foreign travel demand surging before and after the long Chuseok holiday, prices for travel-related services also rose, temporarily widening the increase."
Kim said, "Given the recent rise in volatility of the exchange rate and oil prices, we will review and release a detailed inflation outlook path in the November forecast."