Consumer sentiment rebounds to 4-month high in June amid continued export recovery

SEOUL, South Korea's consumer sentiment rebounded to a four-month high in June amid a recovery in exports and inflation moderation, a central bank poll showed Tuesday. The composite consumer sentiment index stood at 100.9 this month, up from the previous month's 98.4, the highest since February this year, according to the survey conducted by the Bank of Korea (BOK). A reading above 100 means optimists outnumber pessimists. The central bank said consumer sentiment improved this month amid a continued recovery in exports and a slowdown in inflation. Inflation expectations fell this month compared with the previous month. This month, ordinary people expect consumer prices to rise 3 percent for the year ahead, compared with the previous month's 3.2 percent. The figures are closely watched, as their upward move could cause businesses to raise prices and people to ask for pay raises, thereby resulting in more upward pressure on inflation going forward. Consumer prices, a key gauge of inflation, rose 2.7 per cent on-year last month, compared with the 2.9 percent on-year rise a month earlier, marking the second straight month that the price growth slowed down and the figure stayed below 3 percent. The country's central bank froze its key rate for the 11th straight session at 3.5 percent last month amid high inflation and a faster-than-expected economic growth outlook for the year. The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023. Source: Yonhap News Agency