Next year's CPI for S. Korea to be 2.1% but concerns over Korean won's weakness: BOK скачать в хорошем качестве

Next year's CPI for S. Korea to be 2.1% but concerns over Korean won's weakness: BOK

이창용 "내년 물가 2.1% 상승 전망… 고환율 지속 시 더 오를 수도" Consumer prices are forecast to hover at 2-point-1 percent next year but a key variable is the Korean currency with the Bank of Korea concerned about a prolonged state of a weaker won. Our correspondent Kim Do-yeon has details. The Bank of Korea projects consumer prices to increase by 2.1 percent next year, but highlighted a recent rebound in prices due to exchange rate volatility. Governor Rhee Chang-yong stated on Wednesday during an inflation briefing that "if the exchange rate continues at its current high level, inflation is likely to rise higher than the current forecast." "Several factors are compounding to drive up recent consumer inflation. Unlike previous years, unfavorable weather has kept agricultural and fishery prices high, while the rising exchange rate has kept oil prices strong." Taking a closer look at this year's inflation trend, consumer price inflation started the year hovering above the 2-percent range. Inflation slowed by the summer, hitting a yearly low of 1.7 percent in August due to temporary factors. However, inflation started creeping up again in the fourth quarter, with prices in both October and November 2.4% higher than the year before. Despite this recent volatility, the central bank is maintaining its baseline forecast for next year at 2.1 percent. The BOK expects stability because the current economic recovery is led by the IT sector, which tends to have a limited immediate impact on general consumer prices. However, the exchange rate remains a critical variable. The bank’s analysis shows that if the won-dollar rate persists around the 1,470-won level, inflation could exceed its forecast and rise to the mid-2 percent range. Governor Rhee also took the opportunity to address the weakness of the Korean won in detail. He clarified that the current situation is not a "financial crisis" in the traditional sense where banks fail or the nation faces default. However, he admitted that the continued weakness of the won is deeply concerning due to its social impact. "I completely disagree that this is a traditional financial crisis But in other respects, I would call it a crisis and I am deeply worried. The current exchange rate has a significant impact on inflation. Furthermore, when rates rise like this, the divide between those who benefit and those who lose becomes extreme." Governor Rhee emphasized that considering this potential for "growth polarization," the current exchange rate level is far from reassuring and requires vigilance to prevent social discord. Kim Do-yeon, Arirang News. #Consumer_prices #Consumer #Inflation #Exchange_rate #RheeChangyong #물가 #소비자 #소비자_물가 #인플레이션 #고환율 #이창용 #Arirang_News #아리랑뉴스 📣 Facebook :   / arirangtvnews   📣 Twitter :   / arirangtvnews   📣 Homepage : https://v2.arirang.com/ 2025-12-17, 17:00 (KST)