Gold Price Hits Annual Low as Fed Rate Hike Bets and Sticky Inflation Weigh on Bullion 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
Oil Prices Slip as U.S.-Iran Peace Talks and Strait of Hormuz Risks Keep Markets on Edge 
Trump Questions Housing Bill as He Prioritizes SAVE America Act 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Argentina Economy Shrinks 1.5% in April, Recovery Under Milei Loses Momentum 
China Manufacturing PMI Edges Higher in June as Exports and AI Investment Boost Growth 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
South Korea's inflation rate accelerated sharply in May, reaching its highest level in more than two years and strengthening expectations that the Bank of Korea (BOK) could raise interest rates as soon as July.
According to data released Tuesday by the Ministry of Data and Statistics, South Korea's Consumer Price Index (CPI) increased 3.1% year-over-year in May, up from 2.6% in April. The figure exceeded the 3.0% growth forecast by economists surveyed by Reuters and marked the strongest inflation reading since March 2024.
The latest surge in consumer inflation was largely driven by rising energy costs linked to tensions in the Middle East. Prices of petroleum products jumped 24.2% compared with a year earlier, while international airfare climbed 33.5%, reflecting the impact of higher global oil prices.
The Bank of Korea warned that inflation is likely to remain around the 3% level in the near term as rising energy costs spread across other sectors of the economy. The central bank said it will continue monitoring inflation trends closely ahead of its next policy meeting on July 16.
Last week, the BOK raised its 2026 inflation forecast to 2.7% from 2.2% and signaled a possible shift toward tighter monetary policy. Policymakers are aiming to contain inflationary pressures and stabilize the weakening South Korean won.
Market analysts believe further inflation increases are possible if geopolitical tensions in the Middle East continue. Some economists forecast inflation could rise into the mid-3% range under a prolonged conflict scenario.
South Korea’s policy-sensitive treasury bond yield rose 6 basis points to 3.847%, its highest level since November 2023. Meanwhile, the finance ministry estimated inflation would have reached approximately 3.7% in May without fuel price caps introduced nationwide in March.
Core inflation, which excludes volatile food and energy prices, also accelerated to 2.5% from 2.2% in April, signaling broader price pressures across the economy. On a monthly basis, consumer prices rose 0.5%, exceeding market expectations of a 0.3% increase and highlighting persistent inflation risks in South Korea.
