South Korea's inflation accelerates due to rising oil prices

CoinWorld News reports that as energy costs soar, the impact on the domestic economy is intensifying, and consumer inflation in South Korea has accelerated, reaching the fastest level since July 2024. Data released on Wednesday shows that South Korea’s April CPI increased by 2.6% year-on-year, higher than the 2.2% rise in March. Excluding volatile food and energy prices, core inflation rose by 2.2%, indicating that despite ongoing external cost shocks, underlying price pressures remain manageable. The strong inflation data highlights the escalating conflict in the Middle East. In March, South Korea’s import prices surged by about 16%, the fastest increase in nearly thirty years, with high oil prices and currency depreciation continuously transmitting to domestic prices. Against this backdrop, inflation expectations have strengthened. The index tracking price level expectations for the next year rose to its highest level since early 2023, and inflation expectations for the coming year have also increased, indicating that households remain concerned about inflation.