FX.co ★ South Korea Inflation Tops Forecasts in June

In June 2025, South Korea saw a year-on-year inflation increase of 2.2%, a rise from the 1.9% noted in May, and surpassing the anticipated 2.1%. This is the highest inflation rate recorded since January, which also posted a 2.2% increase. Notable price hikes were observed in categories such as furnishings, household equipment and routine maintenance, along with miscellaneous goods and services, both at 4.4%. There were also significant increases in food and non-alcoholic beverages at 3.4%, restaurants and hotels at 3.0%, and education at 2.8%. This inflationary trend follows the Bank of Korea's decision in May to reduce its policy rate by 25 basis points, aimed at bolstering the economy in the face of escalating US tariffs. This reduction marks the fourth such rate cut since October 2024, contributing to a cumulative 100 basis points of monetary easing in the ongoing cycle. On a monthly basis, consumer prices remained stable in June, aligning with market predictions.