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

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

SEOUL: South Korean consumers turned pessimistic about the economic situation in June for the first time in 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, the lowest since January 2021 and the biggest monthly fall since July 2021, according to the Bank of Korea's survey of consumers.

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 per cent from 3.3 per cent 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 14 year high of 5.4 per cent, and the finance minister said on Sunday it could top 6 per cent as early as June.