Barclays: Oil price shock may push up South Korea's March inflation

Golden Ten Data reported on March 6 that Barclays economist Bum Ki Son stated that with the escalation of the Iran conflict and rising oil prices, South Korea's overall inflation in March may face upward risks. Commenting on South Korea's lower-than-expected inflation data for February, he wrote: "In the short term, the biggest factor driving inflation trends is likely to be oil prices." If the Middle East conflict continues, it could bring a significant risk premium to oil prices and have a substantial impact on inflation. He added that South Korea may release oil reserves, which could partially offset some of the upward price pressure. South Korean officials stated that the country's strategic oil reserves could support 208 days of usage without further imports.