Rising oil prices + weakened South Korean won in a double squeeze! South Korea's June CPI rises to a two and a half year high, increasing the likelihood of a rate hike by the central bank in July.

Zhtng cijng APP hu xn, hn gu 6 yu tngzhng l shng zh 2023 nin 12 yu y li zu kui shupng, jn yb qing hule shchng du hn gu yng hng zu zo knng y 7 yu 16 r zhngc huy shng jij de yq. Zhu s gngb de shj xinsh, hn gu 6 yu xiofi zh jio zhsh (CPI) tng b shng zhng 3.2%, goy 5 yu de 3.1%, y jngj xu ji de yc zhng zhy; tch shpn h nngyun dng bdng ji d xingm de hxn tngzhng l wich zi 2.5%, xinsh qinzi jig yl yrn jyu rnxng. According to the Zhtng cijng APP, South Korea's inflation rate in June rose to the fastest level since December 2023, further strengthening the market's expectation of the Bank of Korea's earliest possible interest rate hike at the policy meeting on July 16. Data released on Thursday showed that South Korea's consumer price index (CPI) rose by 3.2% year-on-year in June, higher than May's 3.1% and in line with economists' median forecast; the core inflation rate, which excludes volatile items such as food and energy, remained at 2.5%, indicating that potential price pressures still have resilience.