The oil-driven inflation shock has likely peaked in South Korea, Barclay's Bum Ki Son says. With the government's gasoline supply price cap lowered to 1,780 won per liter from 1,934 won, retail fuel prices are likely to stabilize at around 1,800 won by the end of July, the economist writes in a note. Falling global oil prices point to further downside for domestic fuel prices, he says. Still, elevated fresh food prices could keep headline inflation relatively high through the summer, he adds. Government data show South Korea's headline inflation accelerated to a 30-month high of 3.2% in June, with petroleum products leading price gains. (kwanwoo.jun@wsj.com)
Dow Jones Newswires
South Korea Oil-Driven Inflation Shock Has Likely Peaked — Market Talk
The oil-driven inflation shock has likely peaked in South Korea, Barclay's Bum Ki Son says. With the government's gasoline supply price cap lowered to 1,780 won per liter from 1,934 won, retail fuel prices are likely to stabilize at around 1,800 won by the end of July, the economist writes in a not…