FX.co ★ South Korea Inflation Tops Expectations in September

In September 2025, consumer prices in South Korea rose by 2.1% compared to the same month the previous year. This increase, an acceleration from August's 1.7% rise, outpaced market predictions of a 2% growth. It marked the first upswing in inflation in three months, reflecting renewed inflationary pressures within the economy. The primary driver of this increase was a 3.2% surge in food prices, while non-food items experienced a 2.1% uplift. Further contributing to the upward trend were services, industrial goods, agricultural and marine products, as well as utilities including electricity, gas, and water. On a monthly comparison, inflation rose by 0.5% in September, a turnaround from August's 0.1% decline, and exceeded the expected 0.4% rise. This development could present challenges for the Bank of Korea's policy approach, as the central bank seeks to strike a balance between aiding a slowing economy and preventing inflation from reigniting.