SEOUL, Feb 3 (Reuters) – South Korea’s consumer inflation eased to a five-month low in January, largely in line with market expectations, government data showed on Tuesday.
The consumer price index (CPI) rose 2.0% from a year earlier, compared with gains of 2.3% in the previous month and a median 2.05% increase tipped in a Reuters poll of economists.
It marked the slowest year-on-year rise since August, after four months above the central bank’s medium-term target of 2.0%.
The Bank of Korea last month signalled an end to its current easing cycle after keeping interest rates unchanged, prioritising foreign exchange stability in its first policy meeting of the year amid a weak won.
The won has weakened 0.8% against the dollar so far this year to 1,451.5 per dollar, after ending 2025 2.3% higher on a series of policy measures rolled out in December to stabilise the currency.
Last month, CPI rose 0.4% on a monthly basis, after rising 0.3% in the previous month, also roughly matching the median forecast of a 0.44% rise. Prices of petroleum products fell 2.5%, while agricultural products rose 1.5%.
Core CPI, excluding volatile food and energy prices, was 2.0% higher from a year earlier, rising at the same pace as in the previous month, according to the Ministry of Data and Statistics.
(Reporting by Jihoon Lee; Editing by Chris Reese and Cynthia Osterman)
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