Seoul: The central bank said Tuesday it will closely monitor consumer inflation given recent rising living costs, though it projects inflation to gradually trend down near 2 percent. Bank of Korea (BOK) Deputy Gov. Kim Woong made the pledge during a meeting to review inflation trends, after government data showed consumer prices rose 2.4 percent on-year in November, remaining in the mid-2 percent range for the second consecutive month.

According to Yonhap News Agency, November's price increase was driven by higher petroleum product prices due to the weak currency and a sharp rise in prices of agricultural, livestock, and fishery products. However, core inflation eased amid falling service prices, and overall consumer price inflation is expected to gradually decline to near 2 percent.

Kim emphasized the necessity of monitoring the impact of the won-dollar exchange rate on future inflation closely. He stated that they will maintain heightened vigilance in tracking inflation trends, as living costs have risen. The Korean won has remained well below the psychologically crucial 1,450-won level per dollar in recent weeks due mainly to increased U.S. stock investment by local investors and equity selling by offshore investors following sharp gains.