South Korea's inflation rate is likely to exceed 3% for a second consecutive month, with the June CPI expected to rise 3.2% year-on-year

According to a survey, South Korea's headline inflation rate may exceed 3% for a second consecutive month, remaining above the Bank of Korea's 2% target. The median forecast of seven economists suggests that the benchmark Consumer Price Index (CPI) for June will rise 3.2% year-on-year, up from a 3.1% increase in May. On a monthly basis, CPI is expected to rise 0.1%, compared to a 0.5% increase in the previous month.

Ma Tieying, an economist at DBS Group, stated that the cumulative increase in raw material costs and the weakening of the Korean won continue to transmit into the South Korean economy. He expects the Bank of Korea to raise interest rates once in July and again in the fourth quarter.