South Korea’s consumer price index (CPI) rose by 2.2% year-on-year in June 2025, marking the fastest pace since January and rebounding from a 1.9% increase in May. This uptick surpassed market expectations and highlights renewed inflationary pressures after several months of moderation. According to Statistics Korea, the June CPI reached 116.31 (2020 = 100), reflecting persistent cost pressures in key sectors.
The primary drivers behind this inflation surge were higher petroleum product prices, attributed to rising global oil costs, and a significant increase in processed food prices. Processed foods saw a 4.6% year-on-year jump, the largest gain since November 2023, with notable price hikes in bread (6.4%), coffee (12.4%), and instant noodles (6.9%). Meanwhile, seafood prices also climbed due to ongoing climate-related disruptions, and overall living necessities became 2.5% more expensive compared to a year ago.
Despite the rise in core inflation—excluding volatile food and energy prices—remaining steady at 2.0%, the government is closely monitoring the situation and has pledged to stabilize prices, especially for essential food items. Measures include continued discounts on agricultural products and maintaining tariff quotas on key ingredients, as authorities brace for further uncertainties linked to global oil price volatility and weather conditions.
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(Source: Pulse | Trading View)
