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Inflation expected to stay around 2% target this month: BOK

Published: 03 Feb. 2026, 11:53 Updated: 03 Feb. 2026, 14:56

Shoppers browse for groceries at a large supermarket in Seoul on Jan. 20. [YONHAP]

The central bank on Tuesday projected inflation to remain broadly stable around its 2 percent target this month while calling for close monitoring amid heightened volatility in global oil prices and the foreign exchange market.

Bank of Korea (BOK) Deputy Gov. Kim Woong made the remarks during a meeting to review inflation trends after government data showed consumer prices rose 2 percent from a year earlier in January, marking the slowest growth in five months.

"January's slower inflation was driven by a deceleration in price increases of petroleum products, as well as a slowdown in agricultural and other farm product prices," Kim said.

"For February, inflation is expected to remain around the 2 percent target. Given the recent sharp rise in volatility in global oil prices and the won-dollar exchange rates, however, we will closely monitor developments," he added.

In its latest forecast released in November, the BOK projected consumer prices to rise 2.1 percent in 2026.

The Korean won has fluctuated around the closely watched level of 1,450 won per U.S. dollar in recent sessions.

Yonhap