South Korea inflation picks up to 2.1% in September, topping forecasts
South Korea’s consumer prices rose faster than expected in September, underscoring persistent inflationary pressure even after a one-off dip in August.
The consumer price index climbed 2.1% year-on-year, rebounding from a nine-month low of 1.7% in August and slightly above the 2.0% increase forecast in a Reuters poll, according to data released by the statistics office on Thursday. On a month-on-month basis, prices rose 0.5%, also beating expectations for a 0.4% gain, reversing the prior month’s 0.1% decline linked to temporary mobile-carrier discounts.
Core CPI, which strips out food and energy, accelerated to 2.0% year-on-year, up from 1.3% in August. The services sector maintained steady upward momentum, recording a 2.2% gain.
The data marks a return to the 2% range after August’s dip and follows several months earlier in the year when inflation held above the Bank of Korea’s 2% target. Policymakers are now weighing the resilience of underlying price pressures as they calibrate the pace of future rate moves.
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Return above BoK target keeps inflation pressures in focus for rate outlook.
