South Korea 2025 Inflation Rate Hits 5-Year Low at 2.1%

The fever has finally broken. South Korea's 2025 annual inflation rate settled at 2.1%, marking the lowest level since the pandemic-era lows of 2020. Data from the Ministry of Data and Statistics suggests that the economy is successfully cooling after years of aggressive price growth.

Breaking Down the South Korea 2025 Inflation Rate 2.1%

While the annual figure is a victory for policymakers, December's data serves as a reminder that the path to stability is rarely a straight line. Consumer prices rose 2.3% in December, exceeding the Bank of Korea's target for the fourth month in a row. The main culprit? Petroleum products, which jumped 6.1% year-on-year. Diesel prices led the surge with a 10.8% increase, while gasoline climbed 5.7%.

Inflationary Journey: 2021-2025

Outside of energy, food prices also pressured households. Agricultural, livestock, and fishery products rose 4.1%, contributing 0.32 percentage points to the overall index. Meanwhile, core inflation—which strips out volatile food and energy—stood at 2.3% in December.