The Bank of Korea (BOK) said consumer price gains could widen from April due to the Middle East war's impact.
The Bank of Korea (BOK) held a "price situation review meeting" on the morning of the 2nd, chaired by Vice Governor Yoo Sang-dae, to review recent price conditions and trends. In addition to Yoo, the meeting was attended by the director general of the Research Department, the director general of the Economic Statistics Department 1, the spokesperson, the head of the Macro Forecasting Department, the head of the Prices and Employment Department, and the head of the Price Trends Team.
According to the Ministry of Finance and Economy that day, last month's consumer price inflation was 2.2%, up 0.2 percentage point (p) from the previous month. Petroleum product prices rose 9.9% from a year earlier, but prices of agricultural, livestock, and fishery products fell 0.6%, partially easing overall price gains.
Vice Governor Yoo Sang-dae said, "March consumer price inflation saw a sharp rise in petroleum product prices, but thanks to the government's price stabilization measures and lower prices for agricultural, livestock, and fishery products, the month-over-month increase widened only slightly."
On the price trend from April onward, he said, "With the surge in international oil prices, the increase is expected to widen," while also noting, "Food prices are maintaining a stable trend, and the government's price stabilization measures, including the cap on petroleum product prices, will also ease expense-side upward pressure on prices."
Yoo said, "Uncertainty is high regarding developments in the Middle East and the path of oil prices," adding, "We will stay vigilant and closely monitor price increases."