Korea's inflation hits 30-month high on soaring fuel prices

Korea’s inflation has reached a 30-month high, driven largely by fuel costs, according to the reported figures. Consumer prices rose 3.2% from a year earlier, marking the second consecutive month above 3% and the highest annual increase since December 2023. Energy was the main driver, with fuel prices up 24.7% year-on-year; gasoline increased 23.1% and diesel 33.7%. Food prices also stayed elevated, rising 3.2%, while green onion prices surged 37.1% due to reduced cultivation and heat-related crop damage. Core inflation, excluding food and energy, rose 2.5% from a year earlier. South Korea’s Ministry of Finance and Economy said a fuel price cap introduced in March helped limit inflation, estimating it would have reached 3.6% without the measure. The Bank of Korea expects easing in July but warned demand could keep inflation high.