Bank of Korea sees inflation rising for some time due to Bloomberg

©Bloomberg. People dine at a food stall at Gwangjang Market in Seoul, South Korea, on Thursday, March 3, 2022. South Korea began a two-day early vote on March 4, amid a record wave of coronavirus infections, while data showed inflation accelerated unexpectedly in February as rising costs weighed on voters. (Bloomberg) — The stubbornly high inflation overshadowing South Korea’s economic recovery is likely to continue for some time to come, the Bank of Korea said Thursday, citing the crisis in Ukraine and rising food prices as risks. While South Korea is likely to maintain healthy economic growth this year amid pandemic uncertainties, inflation is expected to remain above the BOK target of 2% for some time, the central bank said in a quarterly report. The BOK will therefore adjust the degree of accommodation of its monetary policy appropriately, it added. The report comes after the bank kept its benchmark rate at 1.25% last month while pausing to assess the impact of its three hikes since August. The latest policy statement suggests the BOK is on track for a possible quarter-point gain in April or May to ease inflationary pressures. The report noted mounting concerns over energy supplies during Russia’s invasion of Ukraine and highlighted rising crop prices as erratic weather hurts production worldwide. The bank does not rule out the possibility of a prolonged period of high inflation, as rising wages and consumer prices feed each other amid rising inflation expectations. The BOK will try to stabilize inflation around its target as it ensures an economic recovery from the pandemic, he said. ©2022 Bloomberg LP Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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