April Consumer Price Growth Hits 19-Month High

Consumer price inflation in April reached 2.6%, its highest level in 19 months, and the highest since July 2022. Experts cited rising exchange rates and international oil prices due to the Middle East situation as the main backdrop for April's price surge. Dubai crude oil prices, as of the end of March 2024, had soared to around $120 per barrel.

Cho Yong-gu, a research fellow at Shinhan Investment Corp., analyzed that government policies offset some of the upward pressure. Ha Geon-hyung, a research fellow at Shinhan Investment Corp., mentioned spring travel demand and improved economic sentiment as factors contributing to the rise in service prices in April.

Choi Ji-wook, a research fellow at Korea Investment & Securities, stated that if high oil prices persist, inflation could reach the 3% range in the third quarter. Jung Yong-taek, a research fellow at IBK Investment & Securities, projected that prices would hit the 3% range if the Iran situation lasts for over six months.