Korea is likely to face inflationary pressure due to rising oil prices, fallout from record high temperatures, and increasing public utility rates.

Korea is likely to face inflationary pressure due to rising oil prices, fallout from record high temperatures, and increasing public utility rates. Rising oil prices tend to fuel inflationary pressure by jacking up production costs. In addition, the current heat wave, is feared to sharply increase prices of vegetables and other foods. Finally, Seoul City and other municipal governments are poised to hike taxi and bus fares as well as water and sewage rates in the coming months.