FX.co ★ South Korea Inflation Holds Steady at 2.1% in April

In April 2025, South Korea's inflation rate experienced a year-on-year increase of 2.1%, mirroring the figure recorded in March and aligning with market predictions. This steadiness in inflation comes as the Bank of Korea decided to maintain its policy rate at 2.75% during its meeting in April. The central bank's decision aims to strike a balance between curbing inflation and fostering economic growth amid a global trade shock and the anticipation of upcoming presidential elections. Additionally, the central bank adjusted its growth projections for 2025, lowering them to less than 1.5%. This revision reflects the repercussions of recent changes in U.S. tariff policies and persistent domestic political uncertainties. Despite these challenges, officials remained consistent with their inflation forecasts, expecting headline inflation to be 1.9% and core inflation to reach 1.8% for the year. On a monthly scale, consumer prices saw a 0.1% rise in April, marking the third month in a row of decelerating gains and meeting market expectations.