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Korea's consumer prices up 2.1% in 2025, lowest in 5 years

Published: 31 Dec. 2025, 11:38

Customers are seen at a retail market in Seoul on Dec. 7. [YONHAP]

Korea's inflationary pressure eased to the lowest level in five years in 2025, following the sharpest price growth in decades during the post-pandemic period, government data showed Wednesday.

Consumer prices, a key gauge of inflation, increased 2.1 percent on-year this year, slightly above the Bank of Korea's inflation target of 2 percent, according to the data from the Ministry of Data and Statistics. The figure marks the lowest annual level since 0.5 percent in 2020.

Inflation surged from 2.5 percent in 2021 to 5.1 percent in 2022 before moderating to 3.6 percent in 2023 and 2.3 percent in 2024, the data showed.

In December, consumer prices increased 2.3 percent from a year earlier, exceeding the central bank's target for the fourth consecutive month, largely due to rising import prices amid the weak Korean won. Inflation stayed in the 2 percent range in June and July before easing to 1.7 percent in August and rebounding to 2.1 percent the following month, remaining in the 2 percent range thereafter.

The ministry attributed this month's inflation mainly to a sharp increase in petroleum product prices, which jumped 6.1 percent from a year earlier, marking the largest on-year gain since a 6.3 percent rise in February.

Notably, prices of diesel surged 10.8 percent, while gasoline prices climbed 5.7 percent, reflecting the impact of the weak local currency, the ministry said. The Korean won has been among the world's weakest-performing currencies over the past year. Korea, which depends heavily on imports for energy, is particularly vulnerable to price fluctuations.

Prices of agricultural, livestock and fishery products rose 4.1 percent on-year, adding 0.32 percentage point to overall inflation.

Core inflation, which excludes volatile food and energy prices, increased 2.3 percent on-year in December, the ministry said.

Yonhap