In a surprising turn of events, South Korea's Consumer Price Index (CPI) experienced a significant shift, moving into negative territory at -0.2% for November 2025, according to updated data released on December 1, 2025. This marks a departure from October's modest inflation rate, which recorded a 0.3% increase, highlighting a month-over-month decrease in consumer prices.
The negative CPI for November suggests a trend of deflation, which could signal potential challenges for South Korea's economy. Economists are concerned that persistent deflation may lead to reduced consumer spending as individuals postpone purchases in anticipation of further price declines, potentially stalling economic growth.
The latest figures emphasize the need for closely monitoring economic indicators to assess the full implications on the country's financial stability and consumer behavior. Policymakers might need to consider interventions to stimulate economic activity and prevent sustained deflation, as the unexpected drop in CPI becomes a focal point for economic strategists in South Korea.
