Key facts
- South Korea's CPI inflation accelerated to 3.14% year-on-year in May.
- This is the highest inflation rate recorded since March 2024.
- Transport inflation was a key driver, rising to 11.60% year-on-year.
- Core inflation increased to 2.53% year-on-year in May.
- Month-on-month inflation stood at 0.46% in May.
South Korea's inflation rate is a critical measure of economic stability, influencing consumer spending and the Bank of Korea's monetary policy. The recent surge in oil prices, exacerbated by Middle East tensions, has directly impacted fuel costs and contributed to broader price increases. This presents a challenge for the central bank as it aims to control inflation and support the won.