Inflation fears grow on high fuel costs
Consumer prices in Korea are expected to increase to the 3 percent range in the coming months due to a rise in international oil prices, but are projected to fall back to the 2 percent range in October.
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Posted 8/27/2023, 6:08:04 AM
koreaherald.com
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South Korea's exports are expected to have fallen 11.6% in August, marking the 11th consecutive month of decline, as China's economic recovery remains sluggish and demand weakens in other regions.
Consumer prices in the US rose 0.2% from the previous month, and 3.3% annually, indicating persistent high inflation and posing a challenge to the Federal Reserve's efforts to curb it; core prices, which exclude food and energy, also increased 0.2% from the previous month and 4.2% from the previous year.
South Korea's annual consumer inflation accelerated to 3.4% in August, the fastest rate since early 2017, raising concerns for policymakers.
The U.S. Consumer Price Index (CPI) is expected to have jumped 0.6% in August, driven by resurgent oil prices, while the core CPI is anticipated to have dipped to a 4.3% year-over-year pace; this higher inflation has dampened the summer rally for bitcoin and other cryptocurrencies, as interest rates are likely to stay higher and for longer than anticipated by investors.
Oil prices reach a 3-month high as OPEC maintains tight supply. Gas prices in the US rise, posing a threat to efforts against inflation.