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 overall 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 indicates that the benchmark Consumer Price Index (CPI) for June is expected to rise 3.2% year-on-year, up from a 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.

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 to the South Korean economy. She expects the Bank of Korea to raise interest rates once in July and again in the fourth quarter.