South Korea's central bank has assessed that although inflation is expected to continue to gradually slow down, there are significant uncertainties surrounding geopolitical risks, economic trends at home and abroad, and climate conditions.

At a meeting to discuss inflation conditions on Tuesday, Bank of Korea(BOK) Deputy Governor Kim Woong said the slowing trend continued in May as both inflation and core inflation dropped from a month earlier.

According to the BOK, last month's inflationary slowdown was due to a drop in the rising rate of agricultural, livestock and fisheries products amid expanded increases in the prices of petroleum products and processed foods. The central bank also took into account a base effect from last month's electricity and gas price hikes.

The deputy governor forecast the gradual inflationary slowdown to continue from a recent slowdown in rising global oil and agricultural prices, while calling for further monitoring of geopolitical risks, economic trends and climate conditions.

According to Statistics Korea on Tuesday, inflation rose two-point-seven percent year-on-year in May, staying below three percent for the second straight month.