Bank of Korea Governor Shin Hyun-song Says Inflation Will Continue to Rise for Now, With Upward Pressure Still Persisting

[The Financial News] Bank of Korea Governor Shin Hyun-song said consumer prices are likely to keep rising sharply for the time being.
At a press briefing on the inflation target operation review held at the Bank of Korea on the 17th, Shin said, "Consumer prices are expected to maintain a relatively strong upward trend for a considerable period ahead."
He pointed to growing uncertainty in energy supply chains after the war in the Middle East and said, "It will take a considerable amount of time before international oil prices return to a stable level."
He added, "The impact of higher oil prices may spread beyond petroleum products to a wide range of items," and "Rising demand from the domestic economic recovery could also act as a factor pushing up inflation."
He also noted, "Wage increases can simultaneously raise corporate costs and boost consumption, increasing upward pressure on prices."
On the recent inflation situation, he said, "Petroleum product prices have risen by more than 20% due to the surge in global oil prices, and core inflation is also running in the mid-2% range," adding, "In particular, the rise in living costs is outpacing consumer inflation, deepening the burden on ordinary households and low-income families."
Shin emphasized, "We are fully aware of the impact inflation has on the national economy," and "We will continue to closely monitor price trends and take necessary measures until we are confident that inflation has stabilized at the target level."
imne@fnnews.com Hong Ye-ji Reporter