South Korea’s inflationary pressure is unlikely to lose steam during the remainder of the year, the top central banker said Monday, pointing to the country’s uphill battle to curb inflation.
“The annual growth rate of consumer prices will slow starting in September due mainly to high price levels a year earlier. But that doesn’t mean inflation pressure will lose ground,” Bank of Korea Gov. Kim Choong-soo told reporters.
The BOK chief said he is worried about the country’s growing consumer inflation, but added the July growth rate was mostly in line with forecasts.
Earlier in the day, the nation’s statistical agency announced South Korea’s consumer price index rose 4.7 percent on-year in July, accelerating from the previous month’s 4.4 percent gain.
July marks the seventh straight month that the consumer inflation rate has remained above the government’s renewed annual inflation target of 4 percent for this year. The government recently revised upward its annual inflation target for this year from 3 percent to 4 percent.
The renewed target, however, is widely seen as getting tougher to achieve as there are few signs of inflationary pressure letting up any time soon with many other factors such as a hike in public service charges poised to further drive up prices.
(Yonhap News)
