South Korea’s June CPI Seen Rising 3.2% Year Over Year, Survey Shows

South Korea’s overall inflation rate is expected to exceed 3% for a second consecutive month, remaining above the Bank of Korea’s 2% target. According to Odaily, the median forecast from seven economists shows the headline consumer price index (CPI) is projected to rise 3.2% year over year in June, compared with a 3.1% increase in May. On a month-over-month basis, CPI is expected to increase 0.1% in June, versus a 0.5% rise in the previous month. DBS Group economist Ma Tieying said cumulative increases in raw material costs and a weaker won are continuing to feed through to South Korea’s economy. Ma also expects the Bank of Korea to raise interest rates once in July and again in the fourth quarter.