South Korea’s consumer inflation showed signs of steady momentum at the end of the year, as official data indicated that prices continued to rise largely in line with market expectations. According to figures released by Statistics Korea on Wednesday, the country’s consumer price index increased by 2.3% in December compared with the same month a year earlier. This result matched the median forecast of economists, reinforcing expectations that inflationary pressures remain relatively stable despite ongoing global economic uncertainty.
On a month-on-month basis, consumer prices rose by 0.3% in December. This exceeded economists’ expectations of a 0.2% increase, suggesting that short-term price pressures were slightly stronger than anticipated. The monthly gain reflects persistent cost increases across several sectors, including services and food-related items, even as global energy prices showed mixed trends toward the end of the year.
Looking at the broader picture, South Korea’s headline inflation rate for the whole of 2025 stood at 2.1%. This level is close to the central bank’s medium-term inflation target, offering policymakers some reassurance that price growth is not spiraling out of control. At the same time, inflation remaining above the 2% mark highlights the delicate balance the Bank of Korea must maintain between supporting economic growth and preventing renewed price pressures.
The latest inflation data comes at a time when global markets are closely watching monetary policy signals from major economies. For South Korea, stable but still-elevated consumer prices may influence future interest rate decisions, particularly as household debt levels and slowing global demand remain key concerns. Economists note that while inflation appears manageable, external risks such as currency fluctuations, geopolitical tensions, and changes in global commodity prices could still affect the inflation outlook in the months ahead.
Overall, the December inflation figures suggest that South Korea’s economy is navigating a relatively stable price environment, though vigilance will be required as policymakers assess how inflation trends evolve in 2026 and beyond.


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