2026.07.0123:12:29UTC+00South Korea Inflation Hits 30-Month High

South Korea’s annual inflation rate rose to 3.2% in June 2026, the fastest pace since December 2023 and slightly above the 3.1% recorded in May. The result matched market expectations and moved further above the central bank’s 2% target, underscoring the impact of accumulated increases in raw material costs and a weaker won that continue to filter through the economy.

Transport costs were the main driver of price gains (11.1% vs 11.6% in May), largely due to higher petroleum product prices. Inflation also picked up for food and non-alcoholic beverages (2% vs 1.6% in May), alcoholic beverages and tobacco (0.5% vs 0.3%), and recreation and culture (5.4% vs 5%). Price growth for restaurants and hotels remained unchanged at 2.7%.

By contrast, inflation eased for clothing and footwear (2.6% vs 2.8%) and for housing and utilities (1.7% vs 1.8%). On a monthly basis, consumer prices inched up 0.1% in June, the smallest increase since April of the previous year and a slowdown from the 0.5% rise recorded in May.