S.Korea consumer sentiment falls for first time in more than a year

SEOUL Reuters -- South Korean consumers were pessimismistic about the economic conditions in June for the first time in more than a year, while inflation expectations hit a decade high, a central bank survey showed on Wednesday.

The consumer sentiment index CSI dropped to 96.4 in June from 102.6 in May, its lowest since January 2021 and the biggest monthly fall since July 2021, according to the Bank of Korea's consumer sentiment survey.

For the first time since February 2021, the index fell below the 100 mark, which is a dividing line between optimism and pessimism.

Consumers' inflation expectations for the next 12 months went up to 3.9% from 3.3% the previous month, hitting the highest since April 2012, according to the survey responses from more than 2,300 households.

South Korea's consumer inflation in May hit a near 14 year high of 5.4%, and the finance minister said on Sunday it may top 6% as early as June.