The Bank of Korea urged closer monitoring of inflation as external risks continue to grow. Although inflation stayed around 2 percent, uncertainties remain strong. The South Korea inflation monitoring effort now focuses on tariffs, exchange rates, and global oil prices.
Deputy Governor Kim Woong reviewed recent inflation trends during a policy meeting. He explained that consumer prices rose by 2.1 percent compared with last year. Moreover, the figure matched earlier projections and showed stability. However, he also warned that external conditions could quickly affect price movements.
Agricultural and fishery prices increased at a slower pace. Improved weather conditions supported supply, while government price stabilization efforts added relief. Furthermore, earlier drops in telecommunications fees no longer influenced the data, which pushed inflation back toward the expected range.
The central bank emphasized that inflation should hover near the 2 percent target. Nevertheless, officials highlighted risks tied to U.S. tariff policies and global tensions. In addition, exchange rate volatility and fluctuating oil prices add fresh pressure. Therefore, South Korea inflation monitoring has become a key priority for the central bank.
Officials believe maintaining steady consumer prices is vital for economic stability. Consequently, they plan to strengthen oversight and prepare for sudden external shocks. Moreover, policymakers stressed the need for coordinated action with government ministries to stabilize food and energy prices.
The South Korea inflation monitoring plan also considers long-term risks. Rising global trade disputes may weigh on supply chains and production costs. Similarly, geopolitical conflicts could disrupt fuel imports and create cost spikes. Therefore, the central bank called for flexibility in policy responses.
Deputy Governor Kim reassured that the bank remains focused on stable inflation. He underlined the importance of staying vigilant as global uncertainty increases. Furthermore, he noted that balanced inflation management will help sustain growth momentum and protect households from sudden price swings.
