Tepid pricing in the industry and weakening price dynamics in agriculture are a downward risk for consumer prices. If consumer spending remains steady, inflation is likely to hover around the target over the upcoming year. A combination of factors might result in a low-inflation environment
With South Korean consumer inflation near 2% and GDP projected to rise, the Bank of Korea is likely to wait for clearer signs of housing market stability before easing. We still prefer an October rate cut over August.
Czech industrial producer prices continued to decline on both an annual and monthly basis in May, keeping the outlook for industry rather calm. Meanwhile, pricing in the construction and service sectors has become more potent, which will keep consumer inflation above the central bank's target
