South Korea Inflation Hits Over 2-Year High

South Korea’s annual inflation rate accelerated to 3.2% in June 2026, marking the fastest pace since December 2023 and up from 3.1% in the previous month. The latest reading was in line with market expectations and climbed further above the central bank’s 2% target, reflecting accumulated increases in raw-material costs and a weaker won that continue to feed through the economy. Transport costs led the price gains (11.1% vs 11.6% in May), driven by higher prices for petroleum products. Prices also increased for food and non-alcoholic beverages (2% vs 1.6% in May), alcoholic beverages and tobacco (0.5% vs 0.3%), and recreation and culture (5.4% vs 5%), while inflation remained steady for restaurants and hotels (at 2.7%). In contrast, inflation moderated for clothing and footwear (2.6% vs 2.8%) and housing and utilities (1.7% vs 1.8%). On a monthly basis, consumer prices edged up by 0.1%, matching estimates, marking the softest rise since April 2025 and slowing from a 0.5% gain in May.

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.