EWY - South Korea inflation climbs to 14-year high in May exceeding forecasts

Consumer price inflation in South Korea has gained some more steam in May, topping expectations again to reach a 14-year high. Specifically, the consumer price index climbed 5.4% Y/Y in May, surpassing a Reuters poll of 5.1% and up from 4.8% in April, according to the Statistics Korea data. Core CPI, excluding volatile food and energy prices, gained 3.4% Y/Y in May. This marks the 14th consecutive month of CPI running above the Bank of Korea's 2% inflation target, Reuters noted. In turn, the central bank may potentially target further interest rate hikes to help bring down inflationary pressures.  Still, "we don't expect interest rates to be raised faster because of today's figures, but the central bank will need to keep the tightening stance while watching for any sign of inflation peaking out around July," said Daishin Securities Economist Kong Dong-rak, who expects the BOK to hike rates two more times in 2022,

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South Korea inflation climbs to 14-year high in May, exceeding forecasts