South Korea Inflation Hits Over 2-Year High

South Korea’s annual inflation rate accelerated to 3.1% in May 2026 from 2.6% in the previous month, surpassing market forecasts of 3.0%. It was the highest reading since March 2024, highlighting the deepening effects of higher oil prices amid the Middle East conflict, with food prices rising the most in three months (1.6% vs 0.3% in April). Inflation also accelerated for housing and utilities (1.8% vs 1.7% in April), transport (11.6% vs 9.7%), clothing and footwear (2.8% vs 2.1%), recreation and culture (5.0% vs 3.4%), education (1.3% vs 1.1%), tobacco (0.3% vs 0.1%), and furnishings, household equipment, and routine maintenance (2.6% vs 1.9%). Meanwhile, inflation was steady for communication (0.6%), restaurant and hotels (2.7%), and miscellaneous goods and services (4.1%). On a monthly basis, consumer prices increased by 0.5%, the same pace as in April. Still, it was the fastest monthly increase since September 2025 and exceeded market estimates of 0.3%.

South Korea’s annual inflation rate climbed to 2.6% in April 2026, matching market forecasts and accelerating from 2.2% in the previous month. It marked the highest reading since July 2024, highlighting the deepening effects of higher oil prices amid the Middle East conflict. Prices increased faster mainly for housing and utilities (1.7% vs 1.5% in March), transport (9.7% vs 5%), and recreation and culture (3.4% vs 2.8%). Inflation also remained unchanged for clothing and footwear ( at 2.1%), communication (at 0.6%), and education (at 1.1%). On the other hand, price growth softened for food and non-alcoholic beverages (0.3% vs 0.5%), alcoholic beverages and tobacco (0.1% vs 0.6%), furnishings, household equipment & routine maintenance (1.9% vs 3.2%), and miscellaneous goods and services (4.1% vs 4.6%). On a monthly basis, consumer prices increased by 0.5%, the fastest rise since late September, in line with estimates and up from a 0.3% gain in the preceding period.

South Korea’s annual inflation rate rose to 2.2% in March 2026, up from 2.0% in the previous two months but less than market forecasts of 2.4%. It was the highest reading since December, breaching the central bank’s 2% target. Price growth accelerated for alcohol and tobacco (0.6% vs 0.4% in February), housing (1.5% vs 1.3%), furnishings, household equipment & routine maintenance (3.2% vs 2.9%), health (1.3% vs 1.1%), transport (5.0% vs 1.1%), communication (0.6% vs 0.4%), and recreation & culture (2.8% vs 0.9%). Meanwhile, the cost of food & non-alcoholic beverages increased at the mildest pace since February 2020 (0.5% vs 2.9%). Inflation also slowed for clothing (2.1% vs 2.4%), education (1.1% vs 1.5%), restaurants & hotels (2.7% vs 2.8%), and miscellaneous goods & services (4.6% vs 5.0%). On a monthly basis, consumer prices went up 0.3%, holding steady for the second straight month but falling short of estimates of 0.6%.