％South Korea Government Bond 10Y
KR-10Y
▼ NegativeMonetaryrelevance
CPI below forecast and slowing inflation reduce pressure for further BOK hikes, likely lowering yields.
Impact on stocks 1
Others
South Korea's consumer price index rose 2.8% year-on-year in July, data from the national statistics office showed, slowing from June's 3.2% and marking the lowest level in three months. The deceleration was driven by falling crude oil prices, and the reading came in below the median market forecast of 3.0%. However, Vice Minister Lee Hyung-il of the Ministry of Economy and Finance cautioned that inflationary pressures persist, including uncertainties in the Middle East. On a month-on-month basis, the index fell 0.2%, weighed down by a 5.5% drop in petroleum product prices. Core CPI, which strips out volatile food and energy prices, rose 2.6% year-on-year, the highest since December 2023. The Bank of Korea raised its policy rate last month for the first time in three and a half years and has signaled further hikes.
CPI below forecast and slowing inflation reduce pressure for further BOK hikes, likely lowering yields.