Bank of Korea Gov. Shin Hyun-song presides over a Monetary Policy Board meeting at the central bank in Seoul on Thursday. (Yonhap) Inflation is projected to remain above the 3 percent level for the time being as the impact of high oil prices spills over into other sectors of the economy amid prolonged Middle East tensions, the central bank said Tuesday."The inflation rate for June is expected to remain at a level similar to that of May, as the pace of petroleum product prices remains elevated," said Lee Ji-ho, director of the research department at the Bank of Korea, during a meeting to review inflation trends."The rise in consumer prices in May was significantly larger than in April, as the increase in petroleum product prices accelerated and service prices rose, particularly for travel-related services such as domestic and international airfares."Earlier in the day, government data showed that South Korea's consumer prices rose 3.1 percent in May from a year earlier, marking the steepest growth in 26 months after rising at the same pace in March 2024. Inflation rose 2.6 percent in April.Petroleum product prices shot up 24.2 percent, accounting for 0.92 percentage point of the overall consumer price increase. It marked the sharpest increase since the 35.2 percent spike recorded in 2022 during the early stage of Russia's invasion of Ukraine.Gasoline prices rose 23.1 percent and diesel prices jumped 33.3 percent.With inflationary pressure mounting, the central bank has shown signs of a more hawkish stance.At its latest rate-setting meeting last month, the BOK kept its benchmark interest rate unchanged but said it would determine the timing of a future rate hike based on inflation trends as semiconductor-driven exports continue to support economic growth. (Yonhap)