Story perspectives
South Korea's Inflation Drops to 2.1%, Rate Stability Ahead
12/31/2025
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Story summary
- South Korea's 2025 inflation declined to 2.1% from 2.3% in 2024, aligning with the Bank of Korea's 2% target.
- The data may support keeping the policy rate at 2.50% for an extended period.
- In December, the consumer price index (CPI) rose 2.3% year-on-year, with monthly prices up 0.3%.
- Despite the drop, inflation remained above the central bank's 2% target for the fourth consecutive month.
