Daijiworld Media Network - Seoul

Seoul, Mar 6: The Bank of Korea (BOK) has signaled heightened concern over ongoing inflationary pressures, citing a complex mix of international and domestic factors. The central bank highlighted the unpredictable nature of global oil and agricultural prices, alongside the fluctuating value of the Korean won and the dynamics of domestic demand, as key sources of uncertainty.

A BOK official emphasized the difficulty in accurately forecasting inflation trends, given these volatile conditions. This assessment comes as the BOK closely observes consumer price inflation, which has shown recent signs of upward movement. The central bank is now tasked with balancing price stability with the need to support economic growth.

The BOK identified global commodity market volatility, particularly in oil and food, as a significant risk to domestic price stability. The weakening Korean won, which increases import costs, and changes in consumer spending patterns and overall domestic economic activity were also cited as key concerns.

The BOK has indicated it will closely monitor economic data and adjust its inflation forecasts accordingly, and is prepared to implement policy measures to maintain price stability. The BOK's cautious stance reflects the wider challenges faced by central banks globally as they navigate a period of significant economic uncertainty.