South Korea’s consumer prices accelerated more than expected in October, marking the fastest year-on-year rise in 15 months and complicating expectations for further policy easing from the Bank of Korea.
Headline CPI rose 2.4% from a year earlier, beating a Reuters poll forecast of 2.1% and quickening from 2.0% in September. On a monthly basis, prices increased 0.3%, also ahead of expectations for no change.
Core CPI, which strips out volatile food and energy costs, climbed 2.2% year-on-year, up from 2.0% previously — signalling that underlying price pressures are building again after months of moderation.
Officials at the Statistics Office said the uptick was broad-based, with higher prices for utilities, fresh food and services contributing most to the increase. The data suggest inflation momentum is re-accelerating as domestic demand firms and energy costs stabilise at higher levels.
The reading marks the fastest pace of inflation since July 2024, reinforcing caution among policymakers who have kept rates steady through 2025 amid a delicate balance between supporting growth and preventing a rebound in inflation expectations.
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The stronger-than-expected CPI print may dampen expectations for Bank of Korea rate cuts early next year. Rising core inflation and broad-based price gains could push policymakers to keep policy restrictive for longer, supporting the won and short-end yields.
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October CPI:
+0.3% m/m
- expected +0.0% prior +0.5%
+2.4% y/y
- expected +2.1%, prior +2.1%
Core CPI +2.2% y/y
- prior 2.0%
