Overview
- Government data show December consumer prices rose 2.3% year over year, above the 2% target for a fourth straight month.
- For all of 2025, inflation increased 2.1%, marking the slowest annual rise since 2020.
- BOK Deputy Governor Kim Woong said December’s pace eased from November’s 2.4% as agricultural, livestock and fisheries prices cooled.
- Kim noted oil costs continued to rise due to a weak won, and the bank will watch the won-dollar exchange rate and seasonal factors as living costs stay in the upper 2% range.
- The central bank projects inflation will gradually trend near 2% as core inflation holds around that level and global oil prices decline.