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Consumer sentiment in South Korea climbed for a third consecutive month in June, buoyed by growing expectations for the newly launched Lee Jae-myung administration.

According to the Bank of Korea’s “June Consumer Survey,” released on June 24, the Composite Consumer Sentiment Index (CCSI) stood at 108.7, up 6.9 points from the previous month. The improvement is attributed to the easing of political uncertainty, the announcement of a second supplementary budget, and optimism surrounding the administration’s economic policy direction.

The Current Economic Conditions Index rose to 74, gaining 11 points month-on-month, reflecting signs of consumption recovery and improved political stability.

The index for future economic outlook also saw a strong jump, rising 16 points to 107, amid expectations for the supplementary budget and the government’s economic agenda.

Housing price expectations climbed to 120, up 9 points from the previous month, as apartment prices rose notably in the Seoul metropolitan area.

Meanwhile, expected inflation over the next year stood at 2.4%, a decrease of 0.2 percentage points from May. This is believed to reflect continued declines in agricultural and petroleum product prices, alongside the government’s ongoing efforts to stabilize inflation.