News

South Korea Inflation Hits 5-Month Low
South Korea’s annual inflation rate eased to 2% in January 2026 from 2.3% in December, extending its slowdown for a second straight month and marking the lowest reading since August. The figure broadly matched market expectations and the central bank’s target, as softer fuel prices and favorable base effects helped curb price pressures. Last month, the Bank of Korea held its policy rate at 2.5% and removed language pointing to the possibility of further easing, though policymakers remain vigilant about currency volatility and the inflationary impact of a weak won. Price increases were strongest in miscellaneous goods & services (5%), food & non-alcoholic beverages (2.9%), furnishings, household equipment & routine maintenance (2.9%), restaurants & hotels (2.8%), and clothing & footwear (2.4%). On a monthly basis, consumer prices rose 0.4% in January, accelerating from 0.3% in December and in line with consensus forecasts.
Published on 2026-02-02

South Korea Inflation Rate Eases in December
South Korea’s annual inflation rate inched lower to 2.3% in December 2025 from 2.4% in the previous two months, marking the lowest level since September and aligning with market forecasts. However, the latest result remained above the central bank’s 2% target for a fourth straight month. Price growth eased for food & non-alcoholic beverages (3.6% vs 4.7% in November), furnishings, household equipment & routine maintenance (2.7% vs 2.8%), health (1.0% vs 1.1%), recreation & culture (1.2% vs 1.4%), and education (1.6% vs 1.7%). At the same time, the costs of alcohol and tobacco were flat after edging up 0.1% previously. Meanwhile, inflation held steady for clothing (at 2.3%), transport (at 3.2%), and communication (at 0.4%), but was higher for housing (1.3% vs 1.2%), restaurants & hotels (3.0% vs 2.9%), and miscellaneous goods & services (4.9% vs 4.2%). On a monthly basis, consumer prices increased 0.3%, reversing a 0.2% decline in November.
Published on 2025-12-30

South Korea Inflation Rate Hits 3-Month Low, Matches Consensus
South Korea’s annual inflation rate inched lower to 2.3% in December 2025 from 2.4% in the previous two months, marking the lowest level since September and aligning with market forecasts. However, the latest result remained above the central bank’s 2% target for a fourth straight month. On a monthly basis, consumer prices increased 0.3%, shifting from a 0.2% decline in November.
Published on 2025-12-30

South Korea Inflation Rate Hits 3-Month Low, Matches Consensus
South Korea’s annual inflation rate inched lower to 2.3% in December 2025 from 2.4% in the previous two months, marking the lowest level since September and aligning with market forecasts. However, the latest result remained above the central bank’s 2% target for a fourth straight month. Price growth eased for food & non-alcoholic beverages (3.6% vs 4.7% in November), furnishings, household equipment & routine maintenance (2.7% vs 2.8%), household goods (1.0% vs 1.1%), health (1.0% vs 1.1%), recreation & culture (1.2% vs 1.4%), and education (1.6% vs 1.7%). At the same time, the costs of alcohol and tobacco were flat after edging up 0.1% previously. Meanwhile, inflation held steady for clothing (at 2.3%), transport (at 3.2%), and communication (at 0.4%), but was higher for housing (1.3% vs 1.2%), restaurants & hotels (3.0% vs 2.9%), and miscellaneous goods & services (4.9% vs 4.2%). On a monthly basis, consumer prices increased 0.3%, reversing a 0.2% decline in November.
Published on 2025-12-30

South Korea Inflation Rate Hits 3-Month Low, Matches Consensus
South Korea’s annual inflation rate inched lower to 2.3% in December 2025 from 2.4% in the previous two months, marking the lowest level since September and aligning with market forecasts. However, the latest result remained above the central bank’s 2% target for a fourth straight month. Price growth eased for food & non-alcoholic beverages (3.6% vs 4.7% in November), furnishings, household equipment & routine maintenance (2.7% vs 2.8%), housing (1.3% vs 1.1%), health (1.0% vs 1.1%), recreation & culture (1.2% vs 1.4%), and education (1.6% vs 1.7%). At the same time, the costs of alcohol and tobacco were flat after edging up 0.1% previously. Meanwhile, inflation held steady for clothing (at 2.3%), transport (at 3.2%), and communication (at 0.4%), but was higher for housing (1.3% vs 1.2%), restaurants & hotels (3.0% vs 2.9%), and miscellaneous goods & services (4.9% vs 4.2%). On a monthly basis, consumer prices increased 0.3%, reversing a 0.2% decline in November.
Published on 2025-12-30

South Korea Inflation Rate Hits 3-Month Low, Matches Consensus
South Korea’s annual inflation rate inched lower to 2.3% in December 2025 from 2.4% in the previous two months, marking the lowest level since September and aligning with market forecasts. However, the latest result remained above the central bank’s 2% target for a fourth straight month. Price growth eased for food & non-alcoholic beverages (3.6% vs 4.7% in November), furnishings, household equipment & routine maintenance (2.7% vs 2.8%), health (1.0% vs 1.1%), recreation & culture (1.2% vs 1.4%), and education (1.6% vs 1.7%). At the same time, the costs of alcohol and tobacco were flat after edging up 0.1% previously. Meanwhile, inflation held steady for clothing (at 2.3%), transport (at 3.2%), and communication (at 0.4%), but was higher for housing (1.3% vs 1.2%), restaurants & hotels (3.0% vs 2.9%), and miscellaneous goods & services (4.9% vs 4.2%). On a monthly basis, consumer prices increased 0.3%, reversing a 0.2% decline in November.
Published on 2025-12-30

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate held at 2.4% in November 2025, unchanged from the previous month and remaining at its highest level since July 2024. The latest figure also stayed above the central bank’s 2% target for a third straight month. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (2.8% vs 2.2%), housing (1.2% vs 1.1%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate stood at 2.4% in November 2025, matching October's reading and remaining at its highest level since July 2024. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (1.2% vs 1.2%), housing (2.8% vs 2.2%), household goods (1.1% vs 2.2%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate held at 2.4% in November 2025, unchanged from the previous month and remaining at its highest level since July 2024. The figure also stayed above the central bank’s 2% target for a third straight month. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (1.2% vs 1.2%), housing (2.8% vs 2.2%), household goods (1.1% vs 2.2%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate held at 2.4% in November 2025, unchanged from the previous month and remaining at its highest level since July 2024. The latest figure also stayed above the central bank’s 2% target for a third straight month. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (1.2% vs 1.2%), housing (2.8% vs 2.2%), household goods (1.1% vs 2.2%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate held at 2.4% in November 2025, unchanged from the previous month and remaining at its highest level since July 2024. The latest figure also stayed above the central bank’s 2% target for a third straight month. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (2.8% vs 2.2%), housing (1.1% vs 2.2%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Rate Stays at 15-Month High
South Korea’s annual inflation rate held at 2.4% in November 2025, unchanged from the previous month and remaining at its highest level since July 2024. The latest figure also stayed above the central bank’s 2% target for a third straight month. Price continued to rise for all components: food & non-alcoholic beverages (4.7% vs 3.5% in October), tobacco (0.1% vs 0.4%), clothing (2.3% vs 2.1%), furnishings, household equipment & routine maintenance (2.8% vs 2.2%), housing (1.1% vs 1.0%), health (1.1% vs 0.9%), transport (3.2% vs 3.4%), communication (0.4% vs 0.4%), culture (1.4% vs 2.1%), education (1.7% vs 1.8%), restaurants & hotels (2.9% vs 3.2%), and miscellaneous goods & services (4.2% vs 4.3%). On a monthly basis, consumer prices declined 0.2%, swinging from a 0.3% rise in October and marking the first drop since August.
Published on 2025-12-01

South Korea Inflation Above Forecasts in October
South Korea’s consumer prices rose 2.4% year-on-year in October 2025, surpassing market expectations of a 2.1% gain as a weaker won pushed up energy and food costs, strengthening the case for a rate hold by the central bank. The reading accelerated from September’s 2.1% and marked the highest level since July 2024. Price increases were most notable for miscellaneous goods & services (4.3%), food & non-alcoholic beverages (3.5%), transport (3.4%), restaurants & hotels (3.2%), and furnishings, household equipment & routine maintenance (2.2%). The data underscores policymakers’ cautious stance after keeping rates unchanged for a third consecutive month in October, balancing growth support with efforts to contain inflation expectations. On a monthly basis, consumer prices rose 0.3%, moderating from a 0.5% increase in September but exceeding the forecast of 0%.
Published on 2025-11-03

South Korea Inflation Tops Expectations in September
South Korea’s consumer prices rose 2.1% year-on-year in September 2025, picking up from a 1.7% increase in August and surpassing market expectations of 2%. It marked the first acceleration in three months, highlighting renewed price pressures in the economy. The uptick was mainly driven by higher food prices, which surged 3.2% from a year earlier, while non-food items advanced 2.1%. Additional upward pressure came from services, industrial goods, agricultural and marine products, and utilities such as electricity, gas, and water. On a monthly basis, inflation climbed 0.5% in September, reversing from a 0.1% decline in August and exceeding the consensus forecast of 0.4%. The data could complicate the Bank of Korea’s policy stance, as the central bank continues to balance the need to support a slowing economy with the risk of reigniting inflation.
Published on 2025-10-01

South Korea Inflation Slows More Than Expected
South Korea’s consumer prices increased 1.7% year-on-year in August 2025, slowing from July’s 2.1% rise and falling short of market expectations of 2%. It marked the lowest reading since November 2024, largely driven by a temporary drop in telecommunication costs. Communication prices slumped 13.3% after SK Telecom, the nation’s largest mobile carrier, offered a 50% discount on monthly subscription fees to all 24 million users following a data breach. In contrast, the biggest price increases came from food and non-alcoholic beverages (4.9%), miscellaneous goods and services (4.8%), and furnishings, household equipment, and routine maintenance (3.7%). On a monthly basis, consumer prices slipped 0.1% in August, reversing July’s 0.2% gain which was also the consensus forecast.
Published on 2025-09-01

South Korea Inflation Slows Slightly in July
South Korea's consumer prices rose 2.1% year-on-year in July 2025, easing slightly from the 2.2% increase in June and aligning closely with market expectations of 2.13%. The largest price gains were seen in miscellaneous goods & services (4.3%), food & non-alcoholic beverages (3.5%), household furnishings and maintenance (3.4%), restaurants & hotels (3.2%), and education (2.6%). The slight cooling in inflation comes as the Bank of Korea held interest rates steady at its July meeting, prioritizing financial stability amid pressure from US tariffs, surging housing prices, and rising household debt. On a monthly basis, consumer prices edged up 0.2%, just under the forecasted 0.22%.
Published on 2025-08-04

South Korea Inflation Tops Forecasts in June
South Korea’s consumer prices rose 2.2% year-on-year in June 2025, up from a 1.9% increase in May and slightly above market expectations of a 2.1% rise. This marks the highest annual inflation rate since January, when inflation also stood at 2.2%. The sharpest price increases were recorded in furnishings, household equipment and routine maintenance (4.4%), miscellaneous goods and services (4.4%), food and non-alcoholic beverages (3.4%), restaurants and hotels (3.0%), and education (2.8%). The inflation uptick comes as the Bank of Korea cut its policy rate by 25 basis points in May to support the economy amid rising US tariffs. This marked the central bank’s fourth rate cut since October 2024, delivering a total of 100 basis points of easing in the current cycle. On a monthly basis, consumer prices were unchanged in June, in line with market expectations.
Published on 2025-07-01

South Korea Inflation Falls to 5-Month Low
South Korea’s inflation rate eased to 1.9% in May 2025, the lowest level in five months and below market expectations of 2.1%. The decline follows the Bank of Korea’s decision to cut interest rates for a fourth time in the current easing cycle, aiming to cushion the economy from the impact of recently imposed US tariffs. The central bank also signaled its readiness to implement additional rate cuts over the next three months if needed. In a separate major development, opposition leader Lee Jae-myung is set to become South Korea’s next president, following months of political turmoil and the impeachment of former President Yoon Suk Yeol over his failed attempt to impose martial law. On a monthly basis, consumer prices dropped 0.1% in May, defying forecasts of a 0.1% increase and marking the weakest reading in six months.
Published on 2025-06-03

South Korea Inflation Holds Steady at 2.1% in April
South Korea's inflation rate rose 2.1% year-on-year in April 2025, unchanged from March and in line with market expectations. The stable inflation reading comes as the Bank of Korea kept its policy rate at 2.75% during its April meeting, aiming to balance inflation control with support for economic growth amid a global trade shock and upcoming presidential elections. The central bank also revised its growth forecast for 2025 downward to below 1.5%, citing the impact of recent U.S. tariff policy changes and ongoing domestic political uncertainty. Despite these challenges, policymakers maintained their inflation outlook, projecting headline inflation at 1.9% and core inflation at 1.8% for the year. On a monthly basis, consumer prices rose 0.1% in April—marking the third consecutive month of slowing gains and aligning with expectations.
Published on 2025-05-01

South Korea Inflation Exceeds Forecast in March
South Korea’s inflation rate edged up to 2.1% in March 2025 from 2.0% in February, surpassing expectations. This comes as the Bank of Korea has cut rates by a total of 75 basis points in the current easing cycle, bringing its policy rate to a two-year low of 2.75%. The central bank revised its growth forecast lower due to the impact of US tariffs and domestic political turmoil. Meanwhile, policymakers maintained their inflation forecast at 1.9% for both 2025 and 2026, while projecting core inflation at 1.8%. On a monthly basis, consumer prices rose 0.2% in March, slowing from February’s 0.3% increase, in line with forecasts.
Published on 2025-04-01