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| ▲ In this file photo, a shopper browses products at a supermarket in Seoul on May 2, 2023. (Yonhap) |
inflation expectations-July poll
Inflation expectations at 14-month low in July
SEOUL, July 26 (Yonhap) -- South Korea's inflation expectations fell to the lowest in over one year in July in line with a downward trend in consumer prices, a central bank survey showed Wednesday.
Ordinary people expected consumer prices in July to rise 3.3 percent for the year ahead, down 0.2 percentage point from what was surveyed a month earlier, according to the poll conducted by the Bank of Korea (BOK).
The reading matches the 3.3 percent logged in May last year, the central bank said.
The figures are closely watched, as their upward move could cause businesses to raise prices and people to ask for pay raises, thereby resulting in more upward pressure on inflation going forward.
South Korea's consumer price index slowed for the fifth straight month in June, falling below 3 percent for the first time in 21 months.
Consumer prices, a key gauge of inflation, rose 2.7 percent last month from a year earlier, compared with a 3.3 percent increase tallied in May, marking the first time for the on-year growth in consumer prices to fall below 3 percent since September 2021.
The survey also showed that the country's consumer sentiment continued to improve in July as post-pandemic activities gathered pace and inflation eased, central bank data showed Wednesday.
The composite consumer sentiment index stood at 103.2 in July, up from 100.7 the previous month, marking the fifth consecutive month of rise, according to the survey.
A reading above 100 means optimists outnumber pessimists.
Earlier this month, the BOK held its key interest rate steady at 3.5 percent for the fourth straight time following rate freezes in February, April and May. The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.
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