Prices of farm produce are expected to rise rapidly due to unfavorable weather conditions, adding to uncertainties surrounding consumer inflation amid external pressures, the central bank said Tuesday.
Bank of Korea Deputy Gov. Kim Woong made the assessment during a meeting to review price trends, following government data that showed consumer prices increased 2.1 percent from a year earlier in July. It marked the second consecutive month that inflation has remained above the country's 2 percent target.
"Recent heavy rains and heat waves are expected to cause a sharp rise in prices of agricultural, livestock and fisheries products," Kim said.
"Going forward, consumer price inflation could remain unstable depending on weather conditions, as uncertainties in external conditions also remain high. We will closely review the inflation path," he added.
Kim, however, noted that "a significant slowdown" in price growth could occur this month, led by planned bill discounts and other services by major mobile carriers.
Industry leader SK Telecom Co. has announced that it will offer bill discounts in August and provide free data services through December, following a major data breach case in April. (Yonhap)
