South Korea’s government sees inflation outpacing BoK projections

At this stage, the government doesn’t see a need for an extra budget early next year, Finance Minister Hong Nam-ki (pic) said at a press briefing following the release of the outlook. The growth forecasts are largely in line with the BoK’s view.

SEOUL: South Korea’s government expects inflation to outpace the central bank’s current forecasts for next year as supply disruptions persist and services spending rebounds, echoing concerns shared by global policymakers that prices will prove harder to tame.

In its 2022 outlook released yesterday, the finance ministry projected inflation at 2.4% this year and 2.2% for 2022, both higher than the Bank of Korea’s (BoK) latest forecasts and its 2% target.