Seoul: Uncertainties surrounding consumer prices remain high due to heightened geopolitical instability in the Middle East and other factors, the top central banker said Wednesday, emphasizing the need for close monitoring of inflation trends and related variables. Bank of Korea (BOK) Gov. Rhee Chang-yong made the remarks during a press conference held in Seoul to review this year's inflation target amid persistent inflationary pressure on consumer prices.

According to Yonhap News Agency, Gov. Rhee highlighted that while inflation remained stable in the first half of this year, perceived inflation and the cost of living have been elevated since the COVID-19 pandemic. He pointed out that uncertainties persist due to factors such as consumer price inflation and surging global oil prices driven by geopolitical instability in the Middle East, stressing the importance of closely monitoring the interaction of various inflation drivers.

Consumer prices rose 1.9 percent in May from a year earlier, marking the first time in five months that inflation has fallen below the 2 percent threshold. However, the increase in processed food prices remained high, staying in the 4 percent range for the second consecutive month. Dining-out prices also rose 3.2 percent on-year in May.

In response to the mounting burdens on the people, President Lee Jae Myung last week expressed concerns over recent price hikes in everyday goods, such as instant noodles, and instructed officials to devise measures to curb inflation. The BOK forecast consumer prices to increase by 1.9 percent this year and 1.8 percent in 2026.