South Korea Inflation Falls to 11-month low as Supply Pressures Ease

South Korea's buyer expansion debilitated to a 11-month low in June as supply-side tensions facilitated, official information displayed on Tuesday, coming in below market assumptions and giving a help to policymakers.

The consumer price index (CPI) rose 2.4 percent higher in June from a year sooner, more slow than the 2.7 percent ascend in May and the most vulnerable since July 2023, as per statistics Korea. In addition, it was significantly below the median 2.7% rise predicted by an economist survey conducted by Reuters. Customer expansion is supposed to balance out to the lower-to-mid 2% level in the second half, the country's vice finance minister said, vowing continued policy measures to keep prices under control.

In the assessment, the Bank of Korea (BOK) stated that it views the fact that inflation has converged with its 2% target and will monitor the situation to see if it does so. After rising by 0.1% in the previous month, the index experienced its first monthly decline in seven months, falling 0.2%. By product, costs of farming products fell 5.3 percent over the course of the month while petroleum goods lost 2.9 percent, hauling the record lower.

BOK governor Rhee Chang-yong said last month the speed of consumer inflation is probably going to keep on easing back, taking care of assumptions the central bank will begin cutting loan costs towards the end of this current year. In May, the BOK extended its interest rate pause for the eleventh time in a row.