SEOUL (Reuters) – South Korea’s consumer sentiment in July was the most optimistic in 27 months, with a brighter spending outlook due to easing inflation concerns, a central bank survey showed on Wednesday.
The Bank of Korea’s consumer sentiment index was 103.6 in July, up from 100.9 in June, marking its highest reading since April 2022.
The sub-index for the consumer spending outlook contributed the most to the rise in the headline figure, followed by those for current economic conditions and the future economic outlook.
The median of consumers’ expectations for inflation in the next 12 months fell to 2.9% in July, from 3.0% in June. It was the lowest since March 2022.
The BOK said earlier this month it was time to prepare to pivot towards interest rate cuts, although more evidence was still needed, after inflation slowed to an 11-month low of 2.4% in June.