Bank of Korea: "July Inflation Rate Expected to Be Lower Than June Due to Falling Oil Prices and Price Stabilization Measures"

Bank of Korea Holds Meeting to Review Inflation Situation

June Consumer Price Inflation Rate at 3.2%

"The consumer price inflation rate in July is expected to be somewhat lower than in June, due to the decline in international oil prices and the government's price stabilization measures."

Jiho Lee, Deputy Governor of the Bank of Korea, made this statement during a meeting to review the inflation situation held at the Bank of Korea in Jung-gu, Seoul, on the morning of July 2, 2026.

Jiho Lee, Deputy Governor of the Bank of Korea. Bank of Korea

The Ministry of Data and Statistics announced on this day that the consumer price index for June rose by 3.2% compared to a year earlier. This is the highest increase since December 2023 (3.2%). Deputy Governor Lee pointed out, "Consumer prices in June rose more sharply than in May, as petroleum prices continued their strong upward trend and the increase in prices of agricultural, livestock, and fisheries products also accelerated."

The cost-of-living index, a key indicator the Bank of Korea monitors when considering a base rate hike, rose by 3.4%, marking the highest level since April 2024 (3.6%). Deputy Governor Lee commented, "The cost-of-living index has also maintained a high growth rate in the mid-3% range, putting a heavy burden on living expenses for vulnerable groups."

Core inflation remained at 2.5%, the same as the previous month (2.5%), as the decrease in service prices such as international airfare and passenger car rental fees was offset by a larger increase in the prices of durable goods.

He further emphasized, "Going forward, consumer price inflation is expected to remain at a high level for some time, as the downward pressure from falling international oil prices will be offset by increased demand pressure resulting from economic recovery. Core inflation is also expected to remain high due to the pass-through of cost shocks and expanding demand pressure. We will closely monitor the inflation situation with a sense of caution."

This content was produced with the assistance of AI translation services.