Bank of Korea expects consumer prices to rise 2.2% in 2025

Bank of Korea expects consumer prices to rise 2.2% in 2025

Bank of Korea Projects 2.2% Consumer Price Inflation for 2025

As of February 2026, the Bank of Korea (BOK) has projected that consumer prices in the country will rise by 2.2% in 2025, reflecting a gradual moderation in inflationary pressures compared to recent peaks. This forecast aligns with the central bank's ongoing efforts to balance price stability with economic growth, as outlined in its latest monetary policy statement.

The projection follows a period of elevated inflation, including a 2.4% year-on-year increase in the Consumer Price Index for November 2023. While inflationary trends have since softened, the BOK notes that global commodity price fluctuations, wage growth, and evolving domestic demand will continue to influence price dynamics in the coming year. The central bank emphasized that its policy framework remains focused on maintaining inflation within its 2% target range over the medium term.

In its recent policy decision, the BOK reiterated a data-dependent approach, signaling potential adjustments to interest rates based on incoming economic indicators. Officials highlighted the importance of monitoring developments in energy markets, exchange rates, and consumer spending to mitigate risks to price stability.

The projected 2.2% inflation rate for 2025 suggests a cautious outlook, indicating that the BOK anticipates a return to more sustainable inflation levels without a sharp reversal of current monetary conditions. Analysts will closely watch upcoming CPI releases and policy updates for further clarity on the trajectory of inflation and potential rate adjustments.

For investors, the projection underscores the need to account for moderate inflationary trends in portfolio planning, particularly in sectors sensitive to interest rate changes or consumer spending. The BOK's commitment to transparency and adaptive policy-making remains a key factor in shaping market expectations.

Consumer Price Index Climbed By 2.4% in November (Ministry of Economy and Finance, November 2023).
Monetary Policy Decision & Opening Remarks to the Press (Bank of Korea, February 2026).