Greater Worry Re: Inflation

On inflation the BoK noted that "Consumer price inflation has remained high in the mid- to upper-3% range due to the ongoing sharp rise in the prices of petroleum products, as well as the accelerating increase in the prices of personal services and industrial products. Core inflation (excluding changes in food and energy prices from the CPI) has risen to the mid-2% level. The inflation expectations of the general public have run at the mid- to upper-2% level. Looking ahead, it is forecast that consumer price inflation will run substantially above 3% for a considerable time, exceeding the path projected in November, and run at the lower-3% level for the year overall. Core inflation is forecast to rise to the mid-2% level this year." This compares to January's post meeting statement which noted that "Looking ahead, it is forecast that consumer price inflation will continue to run in the 3% range for a considerable time, exceeding the path projected in November, and above the mid-2% level for the year overall. Core inflation is forecast to run considerably above 2% this year." There is clearly an uptick in worry re: inflation.