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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.
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South Korea consumer inflation eases to five-month low

South Korea's consumer inflation eased to a five-month low in January, largely in line with market expectations, government data showed on Tuesday.

·United Kingdom
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FXStreet broke the news in on Monday, February 2, 2026.
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