South Korea’s consumer prices rose 2.0% year-on-year in February, slightly easing from January’s 2.2% increase, as slower price growth in energy and agricultural products offset persistent pressures in processed foods and personal services. Core inflation, which excludes volatile food and energy prices, stood at 1.8%, marking a second consecutive month of stability. The government cited exchange rate volatility and global commodity prices as ongoing inflation risks and pledged to continue price stabilization efforts, including tariff adjustments and stockpiling of essential goods.

The Bank of Korea (BOK) said the latest inflation data reflects relative price stability but warned that external conditions remain uncertain. While fuel price growth slowed, the weak won continues to elevate import costs, particularly for energy and food. The central bank, which cut its benchmark rate to 2.75% in February, signaled a cautious approach to further policy moves, stating that it is unlikely to adjust rates again before the U.S. Federal Reserve shifts its stance. The BOK also highlighted the gap between headline inflation and the public’s perception of rising costs, with the Living Price Index increasing by 2.6% year-on-year.