Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Middle East turmoil heightens inflation risks for Korea: BOK – Full Analysis.
Published: 06 Mar. 2026, 15:12
A customer looks at chocolates displayed in a grocery store on Nov. 11, 2025. [YONHAP]
Rising global oil prices amid the Middle East crisis are adding to inflationary pressures in Korea, the central bank said Friday, vowing to step up market monitoring.
Bank of Korea (BOK) Deputy Gov. Kim Woong made the remarks during a meeting to review inflation trends after government data showed consumer prices rose two percent on year in February, marking six consecutive months of inflation at or above two percent.
“The recent increase in global oil prices is adding upward pressure on costs, while slower gains in agricultural and livestock prices and government price stabilization measures are expected to offset some of the pressure,” Kim said.
“The future path of prices will be heavily influenced by oil price movements. We will closely monitor trends amid continued uncertainty over the Middle East situation,” he added.
Petroleum prices fell 2.4 percent on year in February, the first decline in six months. The figure does not reflect the recent spike in oil prices triggered by the Iran crisis.
Global oil prices have surged this week following U.S.-Israeli military operations against Iran, escalating tensions in the broader region.
Oil shipments through the Strait of Hormuz have nearly halted, disrupting global supply and prompting producers to begin cutting output, according to foreign media reports.
Yonhap