South Korea Inflation Holds Steady at 2%

2026-03-05 23:18 By Jam Kaimo Samonte 1 min. read

South Korea’s annual inflation rate held at 2% in February 2026, unchanged from January and slightly below market expectations of 2.1%.

The latest reading remained in line with the central bank’s target, indicating that overall price pressures were largely contained before the Iran conflict triggered renewed volatility in global energy markets.

The escalating Middle East conflict rattled financial markets and pushed energy prices sharply higher, stoking inflation concerns and prompting policymakers to reassess their outlooks.

South Korea is particularly vulnerable to such shocks as it relies heavily on crude oil and natural gas imports from the Middle East.

Last week, the Bank of Korea held its policy rate steady at 2.5% for a sixth consecutive meeting and raised its inflation outlook for this year to 2.2% from an earlier projection of 2.1%.

On a monthly basis, consumer prices rose 0.3% in February, easing from a 0.4% increase in January which was also the consensus forecast.



News Stream
South Korea Inflation Holds Steady at 2%
South Korea’s annual inflation rate held at 2% in February 2026, unchanged from January and slightly below market expectations of 2.1%. The latest reading remained in line with the central bank’s target, indicating that overall price pressures were largely contained before the Iran conflict triggered renewed volatility in global energy markets. The escalating Middle East conflict rattled financial markets and pushed energy prices sharply higher, stoking inflation concerns and prompting policymakers to reassess their outlooks. South Korea is particularly vulnerable to such shocks as it relies heavily on crude oil and natural gas imports from the Middle East. Last week, the Bank of Korea held its policy rate steady at 2.5% for a sixth consecutive meeting and raised its inflation outlook for this year to 2.2% from an earlier projection of 2.1%. On a monthly basis, consumer prices rose 0.3% in February, easing from a 0.4% increase in January which was also the consensus forecast.
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