South Korea Inflation Eases To Five-month Low, Hits BOK Target

Economic

Summary:

South Korean consumer inflation fell to a five-month low in January, reaching the central bank's annual target of 2.0%, according to data released Tuesday.The benchmark consumer-pric...

South Korean consumer inflation fell to a five-month low in January, reaching the central bank's annual target of 2.0%, according to data released Tuesday.

The benchmark consumer-price index rose 2.0% from a year earlier, down from 2.3% in December, the Ministry of Data and Statistics reported. This marked the lowest reading since August 2025 and came in below the 2.1% increase economists had expected.

Lower energy prices helped offset seasonal inflationary pressures from higher agricultural product prices ahead of the Lunar New Year holiday in mid-February, the ministry data showed.

On a monthly basis, consumer prices increased 0.4% in January, slightly below the 0.5% rise economists had forecast. In December, prices had risen 0.3% month-on-month.

Core CPI, which excludes volatile food and energy prices, rose 2.0% year-on-year in January and gained 0.5% from the previous month.

The Bank of Korea stated in its December policy report that it expects inflation to average 2.1% in 2026, unchanged from last year.

Source: Investing

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South Korea Inflation Eases To Five-month Low, Hits BOK Target

Source: Investing

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