BOK says March inflation faces stronger upward pressure from Middle East tensions
- Input
- 2026-03-06 10:38:01
- Updated
- 2026-03-06 10:38:01
Kim Woong, the BOK deputy governor, presided over a meeting to review inflation developments on the 6th and said, "In March, the situation in the Middle East has driven up global oil prices, which has significantly strengthened cost-push upward pressure on inflation."
However, Kim noted, "The recent modest increase in agricultural and livestock prices and the government’s price-stabilization measures will act as downward factors," adding, "Going forward, inflation trends will largely depend on movements in oil prices amid considerable uncertainty over how the situation in the Middle East will unfold."
The price of West Texas Intermediate crude oil (WTI), which stood at 67.02 dollars per barrel on the 27th of last month, jumped 20.9% to 81.01 dollars on the 5th.
In February, the consumer price inflation rate was 2.0%, the same as the previous month. Travel-related personal services saw a temporary surge in prices during the Lunar New Year holiday, but this was offset by lower petroleum product prices and a slowdown in the rise of agricultural, livestock, and fisheries prices.
Year-on-year inflation for petroleum products was revised down from 0.0% in January to -2.4% in February. This reflected last year’s high base and a decline in the won–dollar exchange rate. The figure for agricultural, livestock, and fisheries products also fell from 2.6% to 1.7%.
However, core inflation rose to 2.3%, up from 2.0% the previous month, as stronger travel demand pushed up service prices such as passenger car rental fees and domestic and overseas package tour costs.
The cost-of-living index increased 1.8%, falling into the 1% range for the first time since August last year, when it stood at 1.5%.
Inflation expectations remained unchanged from the previous month at 2.6%.
taeil0808@fnnews.com Kim Tae-il Reporter