Overview
- South Korea’s CPI rose 2.1% in 2025, a five-year low, while December registered 2.3% year on year for a fourth month above the Bank of Korea’s 2% goal.
- Officials pointed to a weak won, higher petroleum costs and pricier imported foods, with reduced fuel tax relief contributing to gasoline and diesel increases.
- The Bank of Korea said it will keep a close watch on prices and expects inflation to ease toward roughly 2% as core readings stabilize and global oil trends soften.
- Seoul expanded household support, extending electricity and city gas discounts, increasing energy vouchers and enlarging the 1,000-won breakfast program for students and workers.
- Pakistan’s CPI slowed to 5.6% year on year in December with prices falling on the month as perishable food costs dropped; the central bank cut rates by 50 bps to 10.5% in December while warning about sticky core inflation and the IMF cautioned against premature easing.