According to Reuters on Thursday, South Korea’s April inflation eased more than anticipated, with the consumer price index (CPI) dropping to a 3-month low of 2.9 percent.
This development has heightened market expectations for potential rate cuts later in 2024, as the central bank aims to align inflation with its two percent target, as stated in a release.
Government interventions aimed at stabilizing food prices led to a successful 3.9 percent decline in agricultural product prices. However, petroleum product prices continued to rise, increasing by 1.6 percent.
Core inflation, which excludes volatile food and energy items, also exhibited signs of cooling. It increased by 2.3 percent year-on-year, down from 2.4 percent in March, marking the slowest pace since December 2021.
