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S.Korea's inflation expectations fall in November

Xinhua
22 Nov 2022, 13:55 GMT+10

SEOUL, Nov. 22 (Xinhua) -- South Korea's inflation expectations slightly fell this month despite lingering worry about high inflation, central bank data showed Tuesday.

Inflation expectations, which gauge outlook among consumers over headline inflation for the next 12 months, stood at 4.2 percent in November, down 0.1 percentage point from the prior month, according to the Bank of Korea (BOK).

After hitting a record high of 4.7 percent in July, the inflation expectations slipped to 4.3 percent in August and 4.2 percent in September each before rebounding to 4.3 percent in October.

Expectations ran high due to higher prices of oil products and farm goods as well as higher utility costs.

To counter inflation, the BOK tightened its monetary policy in August last year, raising its key rate in eight steps from a record low of 0.5 percent to 3.0 percent.

The rate hikes led to lower home prices. The prospective index for housing prices declined 3 points over the month to reach a new low of 61 in November, breaking record lows for the fourth consecutive month.

The composite consumer sentiment index (CCSI) came to 86.5 in November, down 2.3 points from a month earlier.

The lower index was attributable to the still high inflation and the fast rate hikes that boosted worry about economic downturn.

The results were based on a survey of over 2,000 households conducted between Nov. 8 and 15.

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