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BOK vows close monitoring of inflation amid U.S. tariff uncertainty

June 4, 2025

Inflation is projected to remain stable throughout the year, but close monitoring is required due to such risk factors as volatility in the foreign exchange market and global oil prices amid uncertainties stemming from the United States’ aggressive tariff scheme, the central bank said Wednesday.

Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting to review price trends, following government data that showed consumer prices gained 1.9 percent from a year earlier in May.

It was the first time in five months that inflation came to less than 2 percent.

“In June, consumer prices may rise slightly due to base effects, as prices of agricultural and petroleum products declined last year. From the second half of the year, however, the impact of falling oil prices and weak domestic demand are expected to bring inflation down to the 1 percent range,” Kim said.

“Such risk factors as the won-dollar exchange rate, oil price volatility stemming from U.S. tariff policies and weather conditions in summer remain inherent. We will continue to closely monitor future inflation trends,” he added.

People shop at a major discount chain store in Seoul on June 1, 2025. (Yonhap)
People shop at a major discount chain store in Seoul on June 1, 2025. (Yonhap)