According to Odaily, Barclays economist Bum Ki Son has indicated that South Korea's consumer inflation is likely to increase in December following a lower-than-expected growth in November. This potential rise in inflation for two consecutive months could lead the Bank of Korea to pause its interest rate cuts in January.
In November, the benchmark consumer price index rose by 1.5% compared to the same period last year, which was an increase from October's 1.3% rise but fell short of the market's median expectation of 1.7%. Despite this increase, the inflation rate remains below the Bank of Korea's annual target of 2%. Bum Ki Son anticipates that the central bank will resume rate cuts in February, May, and October.
The anticipated inflationary trend and its implications for monetary policy highlight the challenges faced by South Korea's central bank in balancing economic growth with inflation control. The upcoming decisions on interest rates will be closely monitored by economists and market participants, as they could have significant impacts on the country's economic trajectory.