BOK Says November Inflation to Remain in Upper 2% Range

The Bank of Korea said on Nov. 3 that November consumer inflation will remain in the upper 2% range, reflecting still-elevated core inflation.

Lee Ji-ho, senior deputy governor at the BOK, made the assessment while chairing a price conditions review meeting at the central bank earlier in the day.

October consumer inflation eased slightly from September as shipment conditions for agricultural, livestock and fishery products improved, but prices continued to rise at a strong pace, particularly for personal services and durable goods.

Core inflation also remained elevated as accumulated cost pressures fed through to travel, dining-out services and electronics, Lee said.

He added that consumer inflation will likely stay high in the coming months as uncertainty over the Middle East persists, cost shocks continue to pass through and demand-side pressures increase. The BOK will monitor price conditions closely, he added.

Also on Nov. 3, Statistics Korea said the consumer price index rose 2.8% in October from a year earlier.

The core consumer price index, which excludes food and energy, also rose 2.8% from a year earlier, while the cost-of-living index gained 2.6%.

Shim Sung-mi, Hankyung.com reporter smshim@hankyung.com