South Korea Inflation Hits 30-Month High

2026-07-01 23:12 By Joshua Ferrer 1 min. read

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.



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