SEOUL (Reuters – South Korean exports are likely to have grown for a fourteenth consecutive month in December due to year-end holiday demand. Inflation is forecasted at a near 10-year high. A Reuters poll on Tuesday showed that.

According to 13 analysts’ median forecast, December value exports were expected to increase 22% over a year ago. This is a slowdown from November’s 32% jump.

“December shipments are expected to exceed $60 billion in value as demand is strong even as chip prices are declining, and petrochemical products are also enjoying record demand,” said Ye-in Kim, an analyst at Korea Investment & Securities.

On Dec. 13, the country’s trade ministry reported that annual international shipments hit a new record as of December 2013. This is good news for an economy which relies heavily on exports as domestic demand was hurt by COVID-19 social-distancing measures.

The poll on Tuesday showed that imports grew 35.8% in December compared to the previous year, and also slowed from November’s 43.6% increase.

On Saturday, the full month’s trade data (0000 GMT) will be posted.

Analysts predict South Korea’s December consumer inflation to be at 3.6%, which is still above the central bank’s target of 2% for the ninth consecutive month.

Analyst at Meritz Securities Lee Seung-hoon stated that “CPI inflation is likely to exceed 2 percent until the 3rd quarter of next year and this would justify an additional rate increase by the Bank of Korea in fundamental perspective.”

December 16th, Governor Lee Ju-yeol stated that he believes inflation is increasing in Asia’s fourth-largest economy. This leaves the possibility of an interest rate increase as soon as January.

According to 14 economists, the median estimate for November industrial output increased 2.5% compared with October.