South Korea's Gasoline Price Cap Should Anchor CPI Inflation Near 2%

ING Economic and Financial Analysis5.24K FollowersFollow5ShareSavePlay(4min)CommentsSummarySouth Korea’s government imposed a maximum price cap on oil, rolling back gasoline prices to levels from early last week.It's likely to keep consumer price index inflation anchored near 2%.The government is expected to fund these measures by drafting an extra budget.We believe that the Bank of Korea will stand pat for now. Inflation is expected to rise, but with government support, the increase should be limited. IherPhoto/iStock via Getty Images By Min Joo Kang, Senior Economist, South Korea and Japan South Korea's first move to cap prices since liberalisation of oil industry in 1997 Last night, South Korea announced a maximum price limit on oil, effective atThis article was written byING Economic and Financial Analysis5.24K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.