South Korea's consumer prices rose 2 percent year-on-year in January, marking the slowest pace in five months. The slowdown was partly due to stable petroleum product prices, as international crude oil prices fell, according to government data. However, prices for some agricultural and livestock products continued to surge sharply.
South Korea's consumer prices, a key inflation gauge, increased 2 percent year-on-year in January 2026, the slowest pace in five months and the smallest rise since August 2025 at 1.7 percent, according to data from the Ministry of Data and Statistics released on February 3.
Inflation had exceeded the Bank of Korea's 2 percent target for four straight months from September to December 2025. The ministry attributed the January slowdown mainly to stable petroleum product prices, which were largely unchanged from a year earlier. "International crude oil prices based on Dubai crude fell from around $80 per barrel in January of last year to the $60 range this year," said Lee Doo-won, a ministry official.
As a heavy importer of energy, South Korea is particularly sensitive to global price shocks that often fuel domestic inflation. In December 2025, petroleum prices had jumped 6.1 percent year-on-year, the largest gain since February 2025's 6.3 percent rise.
Agricultural, livestock, and fishery product prices rose 2.6 percent year-on-year, the slowest growth since September, though individual items like rice (up 18.3 percent), apples (10.8 percent), and mackerel (11.7 percent) saw sharp increases. Egg prices climbed 6.8 percent due to reduced output from highly pathogenic avian influenza outbreaks.
Industrial goods prices increased 1.7 percent, while electricity, gas, and water rates rose 0.2 percent. Processed food prices accelerated to 2.8 percent from 2.5 percent in December, with instant noodles surging 8.2 percent—the sharpest rise since August 2023's 9.4 percent.
"The Lunar New Year holiday could exert upward pressure on agricultural, livestock, and fishery product prices this month, but some stabilization is expected through measures by relevant government agencies," Lee added. The holiday falls from February 16 to 18. Core inflation, excluding volatile food and energy, rose 2.3 percent year-on-year.
