South Korea’s consumer price index (CPI) rose 3.2% year-on-year in June, marking the highest inflation rate in 30 months.
The acceleration was primarily driven by surging energy costs stemming from the ongoing conflict in the Middle East, which has disrupted global supply chains and kept oil prices elevated.
This marks the second consecutive month that inflation has remained above the central bank’s target range, signaling persistent pressure on household budgets.
The rise in energy prices has rippled through the economy, affecting transportation and manufacturing costs, which are now being passed on to consumers.
The data underscores the continued impact of energy market volatility on major export-driven economies.
With the Bank of Korea having signaled a cautious approach to monetary policy, this inflationary spike may limit the scope for further rate cuts in the near term.