South Korea inflation eases to 2.9% in September as core cools

October 2, 2026 at 04:00 AM1 min

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South Korea's consumer price inflation slowed to 2.9% in September from 3.1% in August, the Ministry of Data and Statistics said Friday. Core inflation excluding food and energy eased to 2.8% from 3.4% a month earlier. The reading matched the median forecast of 17 economists surveyed by The Wall Street Journal.

Key Facts

South Korea's consumer price index rose 2.9% in September from a year earlier, down from 3.1% in August.
Core CPI excluding food and energy rose 2.8% year-on-year in September, slowing from 3.4% in August.
Petroleum product prices jumped 14.8% from a year earlier, with gasoline up 11.8% and diesel up 20.0%.
The finance ministry attributed the easing to a government cap on fuel prices and increased agricultural supplies during the Chuseok holiday.
On a month-on-month basis, consumer prices rose 0.3% in September, below the 0.4% forecast in a Wall Street Journal poll.

Inflation Breakdown

Service prices rose 2.7% from a year earlier, narrowing from a 3.7% increase in August. Public service prices increased 1.5% year-over-year, while personal services rose 3.5%. Transportation prices climbed 7.7% from a year earlier, contributing 0.73 percentage points to overall inflation. Prices for agricultural, livestock, and fishery products fell 0.3% year-on-year, with apples down 9.2% and napa cabbage down 15.2%.

Policy Implications

The Bank of Korea is weighing further rate increases to counter inflation fanned by the Middle East conflict and AI-fueled demand. The September reading matched the median forecast of 17 economists surveyed by The Wall Street Journal. Consensus points to further rate increases in the coming months, though policymakers may pause to assess the lagged effects of hikes in July and August.