Inflation Forecasters Eye Housing, Food Price Increases Amid Declining Oil Costs

The Hyundai Research Institute has forecasted a potential rise in consumer price inflation for the second half of this year, reaching as high as 3.0%.

In its latest report, the institute cited declining oil prices and shifting attention to other product categories as key drivers of this prediction.

The analysis suggests that agricultural, livestock, and fishery products will face growing upward pressure due to worsening supply conditions caused by extreme heat and heavy rainfall, leading to potential price increases in these sectors.

Rent inflation is also expected to continue rising, driven by a shortage of jeonse supply, tighter lending regulations, and stricter owner-occupancy requirements. Public service prices are forecasted to accelerate beyond first-half levels, partly due to a base effect from the temporary reduction in telecommunications fees last year.