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

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

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