SEOUL : South Korea's central bank said on Tuesday it expects consumer inflation to stay above 6 per cent for the time being amid rising inflation expectations, high energy prices and increased demand-side pressures.
"Consumer inflation continued to stay at the 6 per cent level in July, which was in line with the last monetary policy meeting's projection on July 13," said Bank of Korea Deputy Governor Lee Hwan-seok during a meeting with central bank officials. On the demand side, price pressures are expected to last for a considerable period of time for dining, travel and hospitality sectors, the BOK said in a statement released after the meeting to discuss the inflation trend.
South Korea's consumer price index rose 6.3 per cent from a year earlier in July and hit the fastest pace in nearly 24 years, official data showed on Tuesday.