South Korea's December inflation rate rose to 1.9%, complicating the Bank of Korea's policy decisions.

South Korea's consumer inflation rate rose to 1.9% year-over-year in December 2024, surpassing market expectations but remaining below the central bank's 2% target. The increase complicates the Bank of Korea's policy decisions, particularly regarding interest rates, amid political turmoil and economic challenges like weakening consumer sentiment and a recent plane crash. The country's inflationary pressures have eased throughout the year, with consumer prices increasing 2.3% in 2024, the slowest rate in four years.