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A survey suggests that South Korea's inflation rate may exceed 3% for the second consecutive month.

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Golden Finance reports that on June 29, South Korea’s overall inflation rate may exceed 3% for a second consecutive month, above the Bank of Korea’s 2% target, strengthening the case for the central bank to tighten its policy. The median forecast among seven economists surveyed by The Wall Street Journal shows that the benchmark consumer price index (CPI) for June is expected to rise 3.2% year over year, compared with the 3.1% increase in May. The survey indicates that on a month-on-month basis, the index may rise 0.1% in June, after an increase of 0.5% in the prior month. Mareti Ying, an economist at DBS Group, said the cumulative rise in raw material costs and the weakening Korean won continue to filter through to the country’s economy. She expects the Bank of Korea to raise rates once in July and again in the fourth quarter.
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