The consumer price index in South Korea increased 2.3% in July 2023 from a year ago, easing for the sixth consecutive month to the lowest in more than two years, supporting the central bank’s move to pause its tightening cycle through most of this year. The figure also followed a 2.7% rise in June and came in slightly below market forecasts of 2.4%, but held above the central bank’s 2% target. South Korean officials said lower energy prices largely caused the downward trend in inflation, while higher comparison bases last year also made inflation look softer this year. Last month, the Bank of Korea decided to hold interest rates steady for the fourth straight meeting after lifting its policy rate by an aggregate of 3 percentage points from August 2021 to January 2023. That brought borrowing costs to a 14-year high of 3.5%, before the central bank decided to pause its rate-increase campaign in February this year. source: Statistics Korea

Inflation Rate in South Korea averaged 6.91 percent from 1966 until 2023, reaching an all time high of 32.50 percent in October of 1980 and a record low of -0.40 percent in September of 2019. This page provides the latest reported value for - South Korea Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. South Korea Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.

Inflation Rate in South Korea is expected to be 2.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Korea Inflation Rate is projected to trend around 2.00 percent in 2024 and 2.50 percent in 2025, according to our econometric models.

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South Korea Inflation Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-07-03 11:00 PM Jun 2.7% 3.3% 2.85% 2.8%
2023-08-01 11:00 PM Jul 2.3% 2.7% 2.4% 2.4%
2023-09-04 11:00 PM Aug 2.3% 2.7% 2.6%


Related Last Previous Unit Reference
Inflation Rate 2.30 2.70 percent Jul 2023
Inflation Rate MoM 0.10 0.00 percent Jul 2023
Consumer Price Index CPI 111.20 111.12 points Jul 2023
Core Inflation Rate 3.88 4.11 percent Jul 2023
Core Consumer Prices 110.40 110.51 points Jul 2023
Food Inflation 3.39 4.16 percent Jul 2023
CPI Transportation 110.24 109.76 points Jul 2023
CPI Housing Utilities 111.91 113.33 points Jul 2023

South Korea Inflation Rate
In South Korea, the most important categories in the Consumer Price Index are: Housing, Water, Electricity, Gas & Other Fuels (17% of the total weight) and Food & Non-alcoholic Beverages (15%). The index also includes: Restaurants & Hotels (13%), Alcoholic Beverages & Tobacco (10%), Education (11%), Health (9%), and Recreation & Culture (6%). The components with the least weights are Miscellaneous Goods & Services at 5.42%, Furnishings, Household Equipment & Routine Maintenance at 5.39%, and Clothing & Footwear at 4.86%.
Actual Previous Highest Lowest Dates Unit Frequency
2.30 2.70 32.50 -0.40 1966 - 2023 percent Monthly
NSA

News Stream
South Korea Inflation Slows to Over 2-Year Low
The consumer price index in South Korea increased 2.3% in July 2023 from a year ago, easing for the sixth consecutive month to the lowest in more than two years, supporting the central bank’s move to pause its tightening cycle through most of this year. The figure also followed a 2.7% rise in June and came in slightly below market forecasts of 2.4%, but held above the central bank’s 2% target. South Korean officials said lower energy prices largely caused the downward trend in inflation, while higher comparison bases last year also made inflation look softer this year. Last month, the Bank of Korea decided to hold interest rates steady for the fourth straight meeting after lifting its policy rate by an aggregate of 3 percentage points from August 2021 to January 2023. That brought borrowing costs to a 14-year high of 3.5%, before the central bank decided to pause its rate-increase campaign in February this year.
2023-08-01
South Korea Inflation Slows to 21-Month Low
The consumer price index in South Korea increased 2.7% in June 2023 from a year ago, easing for the fifth consecutive month to the lowest since September 2021, supporting the central bank’s move to pause its tightening cycle earlier this year. The figure also followed a 3.3% rise in May and came in below forecasts of 2.85%. The Bank of Korea lifted its policy rate by an aggregate of 3 percentage points from August 2021 to combat inflation, bringing borrowing costs to a 14-year high of 3.5%, before pausing its rate-increase campaign in February this year. On a monthly basis, prices were flat in June after seeing a 0.3% increase in the prior month.
2023-07-03
South Korea Inflation Slows to 19-Month Low
The consumer price index in South Korea increased 3.3% in May 2023 from a year ago, compared to a 3.7% rise in April and easing for a fourth consecutive month. It was the lowest figure since October 2021, supporting the market's perception that the central bank's policy tightening cycle is over after the central bank paused its interest rate at the April meeting. The bank lifted its policy rate by an aggregate of 3 percentage points from August 2021 to combat inflation, bringing borrowing costs to a 14-year high of 3.5%, before pausing its rate-increase campaign in February this year. On a monthly basis, prices rose 0.3%, after a 0.2% increase in the prior month.
2023-06-01