South Korea Core Inflation Likely to Stay in Upper 2% Range Through 1H 2027
Dow Jones
3 hours ago
0332 GMT - South Korea's core inflation could remain in the upper 2% range through 1H 2027, Citigroup's Jin-Wook Kim says. The economist estimates underlying inflation, which excludes volatile food and energy prices, to stay at 2.9% in 3Q, 2.9%-3.0% from 4Q through 1Q 2027, and 2.7% in 2Q 2027. The Bank of Korea is likely to "focus on persistent and broad-based inflationary pressure" in core inflation during its rate-hiking cycle, he notes. Sticky core inflation is driven by time-lagged increases in durable-goods prices and demand-side inflationary pressures amid strong gross domestic income growth, he adds. Citi forecasts further BOK rate hikes in November and February 2027.
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