The Bank of Korea said the jump in global oil prices caused by a U.S.-Iran war is expected to push consumer prices up more in May.
Yu Sang-dae, vice governor of the Bank of Korea, held a "price situation review meeting" at the Bank of Korea in Jung-gu, Seoul, on the 6th and said, "For May, with petroleum product prices staying elevated and the base effect in agricultural, livestock and fisheries prices added, the rise is expected to be larger."
However, Yu said, "It is estimated that the petroleum price ceiling system and fuel tax cuts had the effect of cushioning a considerable portion of the oil shock," adding, "Government price stabilization measures are also expected to ease the upward pressure on prices from the oil shock."
According to the Ministry of Data and Statistics (MODS), the consumer price index in April was 119.37 (2020=100), up 2.6% from a year earlier. It marked the largest gain in 1 year and 9 months since Jul. 2024 (2.6%). In particular, petroleum product prices rose 21.9% over the same period, the highest since Jul. 2020 (35.2%). Gasoline was up 21.1%, diesel 30.8%, and kerosene 18.7%.