In a revised economic outlook released on the 24th, the Bank of Korea (central bank) predicted the consumer price inflation rate for 2022 to be 3.1%. Taking into account soaring oil prices and global supply constraints, this is a 1.1 percentage point increase from the November outlook (2.0%).

This is the first time in 10 years that the Bank of Korea has presented a forecast for an annual inflation rate of 3% or higher, since April 2012 (when it predicted 3.2% for that year). The inflation rate has recorded 3% or higher for four consecutive months, from October last year to January.

In a report released on the 13th of this month, the Bank of Korea stated, "Recently, inflationary pressures have spread to many items, not just oil, and the inflation rate for consumer prices and core prices (excluding volatile energy and food) this year is expected to be significantly higher than last year." The consumer price inflation rate in 2021 was 2.5%.

On the other hand, the Bank of Korea maintained its forecast for real GDP growth in 2022 at 3.0%. This is likely due to strong exports, the possibility of "revenge spending" as consumption suppressed by the COVID-19 pandemic rebounds, and the effects of fiscal support. For 2023, the bank projected consumer price inflation at 2.0% and growth at 2.5%.