The Middle East situation is unstable, and international oil prices have soared to around $100 a barrel, raising concerns about rising domestic prices in the second half of the year. The rise in oil prices stimulates consumer prices, which could accelerate interest rate hikes. Forced labor tariffs imposed by the United States on Korea and exchange rate volatility are also factors that make economic recovery difficult. The government is trying to minimize upward pressure on prices through measures such as reducing fuel taxes, but the possibility of additional interest rate hikes, capital outflows from foreigners, and signals of US interest rate hikes continue to increase uncertainty about the economy.
