Latest reading: Inflation ticked up to 2.4% in July, following June’s 2.3%. Looking at the details of the release, prices...
Inflation in Korea
The Republic of Korea maintained moderate inflation rates over the last decade, averaging around 2%. Inflation was notably below this threshold in the years before the COVID-19 pandemic, and surged in 2021 and 2022 on economic recovery, supply constraints and high commodity prices. That said, inflation in 2022 was still below the OECD average. Inflation came down in 2023 and 2024 thanks to the lagged impact of successive rate hikes by the Central Bank.
In the year 2024, the inflation in Korea was 2.32%, compared to 1.27% in 2014 and 3.60% in 2023. It averaged 1.89% over the last decade. For more inflation information, visit our dedicated page.
Korea Inflation Chart
Note: This chart displays Inflation Rate (CPI, annual variation in %) for Korea from 2014 to 2024.
Source: Macrobond.
Korea Inflation Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Inflation (CPI, ann. var. %, aop) | 0.5 | 2.5 | 5.1 | 3.6 | 2.3 |
| Inflation (CPI, ann. var. %, eop) | 0.6 | 3.7 | 5.0 | 3.2 | 1.9 |
| Inflation (Core, ann. var. %, aop) | 0.4 | 1.4 | 3.6 | 3.4 | 2.2 |
| Inflation (PPI, ann. var. %, aop) | -0.5 | 6.4 | 8.4 | 1.6 | 1.7 |
Inflation moderates in July
Latest reading: Inflation inched down to 2.1% in July from June’s 2.2%, matching market expectations and remaining slightly above the Bank of Korea’s 2.0% inflation target. Looking at the details of the release, housing and utilities costs rose at a milder pace, and transportation prices fell as international oil prices subsided following the resolution of the Iran-Israel crisis. In contrast, food and non-alcoholic beverages prices rose at a quicker pace. Annual average inflation remained at June's 1.9% in July. Meanwhile, core inflation was unchanged, coming in at June's 2.0% in July. Lastly, consumer prices rose 0.18% from the previous month in July, accelerating from June's 0.03% increase. July's result marked the highest reading since March.
Panelist insight: Commenting on the outlook, EIU analysts stated: “The disinflationary trend in 2025 will be aided by milder imported inflation and a high comparison base. Sticky price growth in the service sector will prevent an abrupt fall in inflation, while the deepening of monetary policy easing will also help to put a floor under consumer demand. Occasional surges in food and energy prices, due to adverse weather conditions and heightened geopolitical tension, will continue to represent an upside risk factor for inflation.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Korean inflation projections for the next ten years from a panel of 29 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Korean inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Korean inflation projections.
Want to get access to the full dataset of Korean inflation forecasts? Send an email to info@focus-economics.com.
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