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

According to a survey, South Korea's overall inflation rate may exceed 3% for the second consecutive month, surpassing the Bank of Korea's 2% target. The median forecast from 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 is likely to rise 0.1%, following 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 be transmitted to the South Korean economy. She predicts that the Bank of Korea will raise interest rates once in July and again in the fourth quarter.