Seoul: The central bank has projected that inflation will remain broadly stable around its 2 percent target this month, while emphasizing the need for close monitoring due to heightened volatility in global oil prices and the foreign exchange market.

According to Yonhap News Agency, Bank of Korea (BOK) Deputy Governor Kim Woong made these remarks during a meeting to review inflation trends. This comes after government data revealed that consumer prices rose by 2 percent from a year earlier in January, marking the slowest growth in five months.

Kim noted that January's slower inflation was attributed to a deceleration in the price increases of petroleum products, as well as a slowdown in agricultural and other farm product prices. He further stated that for February, inflation is expected to remain around the 2 percent target. However, given the recent sharp rise in volatility in global oil prices and the won-dollar exchange rates, the BOK will closely monitor developments.

In its latest forecast released in November, the BOK projected consumer prices to rise 2.1 percent in 2026. The Korean won has recently fluctuated around the closely watched level of 1,450 won per U.S. dollar, reflecting the ongoing volatility in the foreign exchange market.