South Korea Inflation Rate

Last Release

May 31, 2025

Actual

1.9

Units In

2.1

Frequency

Monthly

Next Release

Jul 01, 2025

Time to Release

26 Days 13 Hours

Highest	Lowest	Average	Date Range	Source
32.5 Oct 1980	-0.4 Sep 2019	6.78 %	1966-2025	Statistics Korea

In South Korea, the most important categories in the consumer price index are Housing, water, electricity, gas and other fuels (17 percent of total weight) and Food and non-alcoholic beverages (13.6 percent of total weight). Others include Restaurants and hotels (12 percent); Education (11.4 percent); Transportation (10.9 percent); Health (7.3 percent); and Clothing and footwear (6.2 percent). The components with the least weight are Communication at 5.8 percent; Miscellaneous goods and services at 5.4 percent; Recreation and culture at 5.3 percent; Furnishings, household equipment and routine maintenance at 3.8 percent; and Alcoholic beverages and tobacco at 1.24 percent.

Latest Updates

South Korea’s inflation rate eased to 1.9% in May 2025, the lowest level in five months and below market expectations of 2.1%. The decline follows the Bank of Korea’s decision to cut interest rates for a fourth time in the current easing cycle, aiming to cushion the economy from the impact of recently imposed US tariffs. The central bank also signaled its readiness to implement additional rate cuts over the next three months if needed. In a separate major development, opposition leader Lee Jae-myung is set to become South Korea’s next president, following months of political turmoil and the impeachment of former President Yoon Suk Yeol over his failed attempt to impose martial law. On a monthly basis, consumer prices dropped 0.1% in May, defying forecasts of a 0.1% increase and marking the weakest reading in six months.