Central bank says inflation risks may spread from energy to wages and services

Central bank says inflation risks may spread from energy to wages and services
June 17, 2026

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Central bank says inflation risks may spread from energy to wages and services

The Bank of Korea (BOK) warned on Wednesday that inflation pressures stemming from the Iran war could spread more broadly through the economy even if oil prices decline, while unusually large bonusesin the information technology (IT) sector may create additional risks through wages and services. In its semiannual inflation assessment, the BOK said consumer prices are likely to remain elevated for a considerable period as higher energy costs feed through industrial supply chains and service sectors with a lag. The BOK said oil shocks historically begin affecting broader prices around six months after the initial increase and can continue

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