Korea's annual inflation above 3% in June but slows amid sluggish demand

By Kim Yeon-jae Posted : July 2, 2026, 08:19 Updated : July 2, 2026, 11:08
Gasoline and diesel prices per liter are displayed at a gas station in Seoul on April 27, 2026. AJP Han Jun-gu.
SEOUL, July 02 (AJP) - South Korea's consumer inflation remained above 3 percent for a second straight month in June, driven by elevated energy costs stemming from the prolonged Gulf crisis, although monthly price growth slowed, suggesting inflation may have peaked as global oil prices eased and domestic demand remained weak.

The composite consumer price index (CPI) stood at 119.99 in June, up 3.2 percent from a year earlier and 0.1 percent from the previous month, the Ministry of Data and Statistics said Thursday.

Core inflation, which excludes food and energy, held steady at 2.5 percent, while another core measure excluding agricultural products and petroleum products rose 2.4 percent.

The living necessities index increased 3.4 percent from a year earlier, outpacing headline inflation. Industrial goods prices climbed 4.4 percent, led by a 24.7 percent surge in petroleum products. Services inflation eased to 2.6 percent from 2.8 percent in May, reflecting sluggish domestic demand.
Kim Yeon-jae

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