South Korea's March Inflation Rises to 2.2% Amid Oil Price Surge

SEOUL, April 2 - South Korea’s consumer inflation rose to 2.2% annually in March, slightly above February’s level but below expectations. The data, released by the Ministry of Data and Statistics, reflects ongoing concerns over surging oil prices due to the Iran conflict.

Fuel price caps were introduced nationwide last month for the first time in nearly 30 years, as the country, Asia’s fourth-largest economy and the world’s fourth-largest oil importer, grapples with energy cost pressures.

Monthly CPI climbed 0.3%, consistent with February’s gain and below forecasts of 0.6%. Petroleum products surged 10.4% over the month, while agricultural goods dropped 3.0%.

Core inflation, excluding volatile food and energy, remained at 2.2%, down from 2.3% in February.

The figures come ahead of the Bank of Korea’s policy meeting on April 10. In February, the central bank held rates steady, signaling no changes until at least August.