South Korea Inflation Slows to 2 Percent in January Amid Stable Fuel Prices
South Korea's inflation rate met the Bank of Korea's 2% target as petroleum product prices fell 2.5%, easing overall consumer price growth in January, government data showed.
- On Feb 3, the Ministry of Data and Statistics reported South Korea's consumer price index rose 2.0% year‑on‑year in January, down from 2.3% in December.
- Petroleum product prices staying steady or falling helped ease fuel costs, and a high base from Lunar New Year reduced year-on-year inflation, the ministry said.
- Monthly CPI rose 0.4%, roughly matching forecasts, while rice, apples and mackerel prices jumped sharply and housing and utilities increased 1.3%, transportation climbed 1.1%.
- With the policy rate held at 2.5%, the Bank of Korea signalled an end to easing last month and officials warned FX volatility could raise import prices and complicate inflation.
- Forecasters project annual headline CPI will rise 2.1% in 2026, while the Korean won has weakened about 7% since the second half of last year, increasing vulnerability to external shocks.
7 Articles
7 Articles
Consumer prices rise 2% in January, slowest pace in 5 months
South Korea's consumer prices rose at the slowest pace in five months in January, partly helped by the steady prices of petroleum products, government data showed Tuesday. Consumer prices, a key gauge of inflation, increased 2 percent from a year earlier last month, according to the data from the Ministry of Data and Statistics. It marks the smallest on-year increase since August, when the figure stood at 1.7 percent. Inflation had remained abov…
South Korea’s inflation slows to target but central bank caution remains intact
South Korea’s consumer prices rose 2% from a year earlier in January, the slowest pace in five months, as petroleum product prices flattened and agricultural price pressures eased, government data showed Tuesday. Consumer prices rose 0.4% from the previous month, according to the Ministry of Data and Statistics, with declines in industrial goods offset by […]
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