Inflation keeps cooling in May, but still above BOK's target

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Inflation keeps cooling in May, but still above BOK's target

Published: 02 Jun. 2023, 10:03 Updated: 02 Jun. 2023, 15:35

Customers shop for food at a discount store on Tuesday. [YONHAP]

Korea's consumer prices growth slowed for the fourth consecutive month in May, data showed Friday, in yet another signal that the country's inflation has passed its peak.

Consumer prices, a key gauge of inflation, rose 3.3 percent last month from a year earlier, compared to a 3.7 percent on-year rise in April, according to the report from Statistics Korea Friday. The figure was the lowest since 3.2 percent tallied in October 2021.

The growth fell below 4 percent for the first time in 14 months in April.

Korea's inflation has been falling with some ups and downs after reaching a peak of 6.3 percent in July last year.

Last week, the Bank of Korea (BOK) held the benchmark interest rate steady for the third straight time at 3.5 percent on easing inflationary pressure amid rising concerns over an economic slowdown.

Inflation stayed above 2 percent — the central bank's inflation target over the medium term — for the 26th straight month in May.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]