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Economics
Inflation & Prices

Korea’s Inflation Decelerates in Boost for BOK Wary of Fed Risks

  • Bank of Korea governor expected inflation might fall below 5%
  • Federal Reserve could become important factor for BOK policy
The BOK last month edged down its forecast annual inflation for 2023 to 3.5% from a previous 3.6%.

The BOK last month edged down its forecast annual inflation for 2023 to 3.5% from a previous 3.6%.

Photographer: SeongJoon Cho/Bloomberg
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South Korean inflation decelerated by more than expected in February, easing domestic concerns for a central bank that’s also closely monitoring offshore risks including sharper U.S. policy tightening.

Consumer prices advanced 4.8% from a year earlier, slowing from January’s 5.2% and coming in below economists’ estimate of 5%, statistics office data showed Monday. Finance Minister Choo Kyung-ho highlighted that oil prices in February fell from a year earlier for the first time since early 2021.