SEOUL :South Koreans’ consumer inflation expectations hit their highest in at least 20 years while their confidence in economic prospects hit a near two-year low, a monthly central bank survey showed on Wednesday.
In the Bank of Korea’s (BOK) July survey, South Koreans expected inflation to average a median 4.7 per cent in the next 12 months, up fast from 3.9 per cent in the previous survey and hitting the highest since data releases began in February 2002.
The same survey showed an index measuring how South Koreans assess future economic conditions and living standards fell to 86.0 in July from 96.4 in June, hitting its lowest since September 2020 and scoring the largest fall since March 2020.
Economists said the survey underscored a deepening dilemma for policymakers in fighting still high inflation while taking care of the cooling economy.
“These findings show economic growth would begin losing momentum from later this year and that…
