South Korea's Inflation Exceeds Expectations in February

South Korea’s inflation rate eased to 2% in February 2025, down from a six-month high of 2.2% in January.

However, it came in higher than market expectations of 1.95%.

This data follows the Bank of Korea’s decision to reduce interest rates by 25 basis points to 2.78% in its February meeting, citing stabilizing inflation, easing household debt, and sluggish economic growth.

The central bank maintained its inflation forecast at 1.9% for both 2025 and 2026, while projecting core inflation at 1.8%.

On a monthly basis, consumer prices rose by 0.3% in February, a slowdown from the 0.7% increase in January, but still surpassing the anticipated 0.2%.