Expected inflation rate to be 3.2% due to stable international oil prices, lowest since April 2022 - South Korean report

The expected inflation rate, one of the most important indicators for the Korean central bank to achieve its price stability target, hit its lowest level in 18 months. This is a stable trend in international crude oil prices.
As a result, the rate of increase in domestic consumer prices in South Korea has slowed down significantly. On the other hand, the Consumer Sentiment Index is still below the baseline of 100, but it has started to rise for the first time in five months.
According to the ``December Consumer Trend Survey Results'' announced by the Bank of Korea on the 27th, the Bank of Korea conducted a questionnaire survey of 2,500 households nationwide from the 11th to the 18th.
As a result, the expected inflation rate for the next year was 3.2%, down 0.2% from the previous month. This is the lowest figure since April 2022, when it hit 3.1%. Expected inflation rate this year
It showed a downward trend in July (3.3%), August (3.3%), and September (3.3%), and remained at a low level.
It rose again in October (3.4%) and November (3.4%), but has slowed again for the first time in five months.
. The main items that will affect price increases over the next year are public fees (65.2%), agricultural, livestock and marine products (43.5%), and petroleum products (25.3%). Agriculture, livestock and fisheries products (compared to the previous month)
4.1%) and personal services (3.6%), while petroleum products (-12.6%) decreased. This decline in the expected inflation rate was due to the stabilization trend in international crude oil prices.
It is analyzed as a thing. Hwang Hee-jin, head of the statistical research team at the Bank of Korea's Economic Statistics Bureau, said, ``The decline in oil prices has widened, which has had a major impact on the slowdown in the rate of inflation.''
He explains. The price increase rate in November was 3.3%, which is significantly lower than the 3.8% increase in October, the previous month.
However, the Bank of Korea is unsure whether the expected inflation rate will continue to slow down.
I think it is necessary to keep an eye on it. This is because there is a risk that prices will rise further due to continued increases in utility charges, and the future of international crude oil prices is uncertain.