Top Headlines

Feeds

South Korea January CPI Rises 2% as Petroleum Prices Stabilize, Egg Costs Spike

Updated (6 articles)
  • This April 13, 2025, file photo shows a supermarket in Seoul. (Yonhap)
    Image: Yonhap
    This April 13, 2025, file photo shows a supermarket in Seoul. (Yonhap) Source Full size

January CPI Shows Modest Year‑on‑Year Increase The consumer price index rose 2 percent in January 2026 compared with the same month a year earlier, marking the slowest annual gain in five months and the smallest since August’s 1.7 percent rise. Inflation had stayed above the Bank of Korea’s 2 percent target for four consecutive months from September through December 2025. The data were released by the Ministry of Data and Statistics. [1]

Petroleum Prices Remain Flat, Offsetting Other Pressures Petroleum product prices were essentially unchanged year‑on‑year, cushioning broader price pressures. International crude oil prices based on Dubai fell from about US$80 per barrel in January 2025 to the $60 range in early 2026. South Korea’s heavy reliance on energy imports makes it vulnerable to such external price swings. [1]

Food Categories Drive Inflation, Eggs Surge Amid Avian Flu Prices for agricultural, livestock and fishery items rose 2.6 percent YoY, the slowest growth since September 2025. Specific commodities saw sharp jumps: rice +18.3 %, apples +10.8 %, and mackerel +11.7 %. Egg prices climbed 6.8 % due to a highly pathogenic avian influenza outbreak that reduced poultry output. [1]

Core Inflation Slightly Above Headline, Industrial Goods Rise Excluding volatile food and energy, core CPI increased 2.3 percent YoY, marginally higher than the headline rate. Industrial goods prices rose 1.7 percent, while electricity, gas and water rates edged up 0.2 percent. Processed foods rose 2.8 percent and instant noodles surged 8.2 percent, the sharpest increase since August 2023. [1]

Lunar New Year May Push Food Prices Higher, Government Monitoring Finance Minister Lee warned that the Lunar New Year holiday (Feb. 16‑18) could lift agricultural, livestock and fishery prices, although government measures aim to stabilize them. The holiday period traditionally spikes demand for food items, potentially offsetting the recent slowdown in price growth. [1]

Sources

Timeline

2020 – South Korea’s annual consumer price inflation falls to 0.5%, the lowest level recorded in the past decade, highlighting a pre‑pandemic period of price stability[2].

2022 – Inflation spikes to 5.1%, the highest since the pandemic, underscoring the sharp post‑COVID price pressures that later prompt tighter monetary policy[3].

Dec 2024 – Political turmoil erupts after President Yoon Suk‑yeol declares martial law, a shock that later depresses consumer confidence and frames the sharp sentiment drop observed in 2025[4].

2025 – South Korea’s consumer price index averages 2.1% YoY for the year, the lowest inflation in five years and near the Bank of Korea’s 2% target, signaling a cooling after years of higher rates[2].

Nov 2025 – Consumer prices rise 2.4% YoY, driven by a 5.6% jump in agricultural goods and a 5.9% surge in petroleum products, while core inflation climbs to 2.9% – the highest since July 2024; the Ministry of Data and Statistics pledges to “closely monitor supply and price conditions for key items such as food and petroleum products and respond swiftly to significant fluctuations”[6].

Nov 2025 – Producer prices increase 0.3% month‑on‑month, with industrial goods up 0.8%, DRAM prices soaring 15.5% and flash memory up 23.4%, reflecting strong semiconductor demand and a weak won; agricultural prices fall 2.1% month‑on‑month[5].

Dec 2025 – December CPI climbs to 2.3% YoY, exceeding the 2% target for the fourth consecutive month, while core inflation holds at 2.3% and agricultural prices add 0.32 percentage points, illustrating persistent import‑price pressure from a weak won[2].

Dec 2025 – The Bank of Korea’s consumer sentiment index slips to 109.9, the steepest decline since Dec 2024, as officials attribute the drop to rising food and petroleum prices, exchange‑rate volatility and uncertainty over the AI industry; the won hovers near a 16‑year low of 1,480 per dollar, prompting verbal intervention[4].

Jan 2026 – The January CPI rises 2% YoY, the slowest increase in five months, with petroleum product prices flat, agricultural and fishery prices slowing to 2.6%, and egg prices jumping 6.8% due to avian flu; Lee warns the upcoming Lunar New Year could lift agricultural prices despite government stabilization measures[1].

Feb 16‑18, 2026 – The Lunar New Year holiday arrives, a period that historically pushes up agricultural, livestock and fishery prices, prompting agencies to aim for price stabilization during the festive season[1].

All related articles (6 articles)