South Korea’s June inflation hits fastest pace since 1998

Inflation in South Korea accelerated to its fastest pace since late 1998 in June, surpassing forecasts and keeping pressure on the Bank of Korea (BOK) ahead of an interest rate hike decision next week.

Consumer prices in South Korea increased by 6 percent in June compared to the same month a year ago, the highest annual rate of inflation in nearly 24 years, according to statistics released Tuesday by the statistical office.

In June, the CPI came in at 108.22.

This year, consumer price inflation has accelerated, rising from 4.1 percent in March to 4.8 percent in April to 5.4 percent in May. It was fueled by rising global commodity costs as supply chain disruptions and geopolitical threats in Europe persisted.

South Korea’s central bank is anticipated to raise rates by a half-percentage point next week to curb inflationary pressure.