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BOK to step up monitoring of prices amid high living costs

Published: 31 Dec. 2025, 11:57

Customers shop at a discount chain store in Seoul on Dec. 24. [YONHAP]

The central bank said on Wednesday that it will closely monitor consumer inflation given high living costs, though it projects inflation to gradually trend down near 2 percent.

Bank of Korea (BOK) Deputy Gov. Kim Woong made the remarks during a meeting to review inflation trends after government data showed consumer prices rose 2.3 percent on year in December, remaining above the bank's 2 percent target for the fourth consecutive month.

“Consumer prices in December rose at a slower pace than the previous month's 2.4 percent, as gains in agricultural, livestock and fisheries prices eased despite continued increases in oil prices driven by the weak won,” Kim said.

“But everyday living costs remain elevated in the upper 2 percent range, so we will continue to closely monitor prices, paying attention to the impact of the won-dollar exchange rate and seasonal factors,” he added.

The BOK expects consumer inflation to gradually ease toward around 2 percent as core inflation remains stable at about 2 percent and falling global oil prices help curb inflationary pressures.

For the whole of 2025, government data showed the country's consumer prices gained 2.1 percent from a year earlier, the slowest on-year increase since 2020.

Yonhap