South Korea’s annual inflation rate accelerated to 3.1% in August 2026, up from 2.8% in July. Although the figure came in slightly below market expectations of 3.2%, it moved further above the central bank’s 2% target.
Transport inflation remained high at 7.2%, though it moderated from 7.7% in the previous month. Communication costs jumped sharply, rising 16.6% from just 0.5% in July. Inflation also picked up in several other categories, including recreation and culture (4.9% vs 5.5%), housing and utilities (1.9% vs 1.8%), and restaurants and hotels (2.8% vs 2.8%).
In contrast, prices for food and non-alcoholic beverages fell 0.5%, compared with a 0.9% decline previously, with fresh food prices dropping 6.7%.
On a monthly basis, consumer prices increased 0.2% in August, undershooting market expectations for a 0.3% rise but rebounding from a 0.2% decline in the prior month.
