South Korea’s inflation slowed to 2.0% in January 2026, below target, with stable core inflation and mixed price changes.

South Korea’s consumer inflation eased to 2.0% year-on-year in January 2026, the lowest in five months and below the central bank’s 2.0% target for the first time in half a year, according to government data. The rise matched forecasts and was down from 2.3% in December, with core inflation steady at 2.0%. Monthly prices rose 0.4%, driven by a 2.5% drop in petroleum costs and a 1.5% gain in agricultural prices. The Bank of Korea held its policy rate unchanged, ending its easing cycle and focusing on stabilizing the won, which depreciated 0.8% against the dollar in early 2026 after a 2.3% gain in 2025.