Uncertainties remain high regarding prices, given geopolitical issues and trade conflicts among major nations, the central bank here said on Thursday.
Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting meant to check prices after government data showed that consumer prices, a key gauge of inflation, rose 2 percent from a year earlier in February following 2.2 percent growth in January.
"Uncertainties remain high regarding geopolitical situations, trade conflicts among major nations, the foreign exchange rate and domestic demand," Kim said.
"Inflation is expected to move around our target level given both downside and upside risks," he added.
The BOK projected 1.9 percent price growth in 2025 in its latest forecast.
Meanwhile, South Korean stocks opened higher on Thursday after the U.S. administration agreed to delay auto tariffs on Mexico and Canada.