The central bank said Tuesday it will closely monitor consumer inflation given recent rising living costs, though it projects inflation to gradually trend down near 2 percent.
Bank of Korea Deputy Gov. Kim Woong made the pledge during a meeting to review inflation trends, after government data showed consumer prices rose 2.4 percent on-year in November, remaining in the mid-2 percent range for the second consecutive month.
"November's price increase was driven by higher petroleum product prices due to the weak currency and a sharp rise in prices of agricultural, livestock and fishery products. But core inflation eased amid falling service prices, and overall consumer price inflation is expected to gradually decline to near 2 percent," Kim said.
"But the impact of the won-dollar exchange rate on future inflation needs to be monitored closely. We will maintain heightened vigilance in tracking inflation trends, as living costs have risen," he added.
The Korean won has remained well below the psychologically crucial 1,450-won level per dollar in recent weeks due mainly to increased US stock investment by local investors and equity selling by offshore investors following sharp gains. (Yonhap)
