Key facts
- South Korea's import prices fell for the second consecutive month in May.
- Import prices decreased by 0.3% month-on-month in May.
- Lower oil costs contributed to the decline in import prices.
- South Korea's import prices fell 2.1% in April.
- South Korea's M2 money supply rose 0.6% in April.
- The M2 money supply reached 4,153.9 trillion won in April.
- Higher deposits drove the increase in M2 money supply.
- The Bank of Korea signaled a potential move toward higher interest rates.
- The Bank of Korea's May meeting is when higher interest rates may be considered.
South Korea experienced a second consecutive month of falling import prices in May, with the import price index decreasing by 0.3% compared to the previous month. This decline follows a more significant drop of 2.1% recorded in April. The primary driver behind this trend is the reduction in oil prices.
In parallel, South Korea's M2 money supply expanded by 0.6% in April, bringing the total to 4,153.9 trillion won. This growth in the money supply is largely attributed to an increase in deposits. The release of this monetary data coincides with signals from the Bank of Korea indicating a potential consideration of higher interest rates at its upcoming May meeting.