03.11.202523:40:46UTC+00South Korea Inflation Above Forecasts in October

In October 2025, consumer prices in South Korea rose by 2.4% compared to the previous year, surpassing market predictions of a 2.1% increase. This rise was fueled by a weaker won, which drove up costs for energy and food, reinforcing the argument for the central bank to maintain its current interest rate. The inflation rate accelerated from the 2.1% recorded in September, reaching its peak since July 2024. The most significant price hikes were seen in miscellaneous goods and services (4.3%), food and non-alcoholic beverages (3.5%), transport (3.4%), restaurants and hotels (3.2%), and furnishings, household equipment, and routine maintenance (2.2%). These figures highlight the cautious approach of policymakers who have kept interest rates steady for the third month in a row, striving to support economic growth while managing inflation expectations. On a monthly basis, consumer prices increased by 0.3%, slowing from September's 0.5% rise but still above the anticipated forecast of no change.