Recent sharp increases in international oil prices are primarily due to uncertainty surrounding oil transportation caused by the Middle East conflict, posing a significant challenge for South Korea due to its heavy reliance on oil imports. The rise in oil prices could increase consumer inflation by 0.20%p and also raise the rate of core inflation by 0.10%p, exacerbating inflationary pressures. Over the long term, if oil prices continue to rise, inflation could potentially increase by 1.6%p.