South Korea’s annual inflation rate eased for the second straight month, slipping to 2.8% in October 2026 from 2.9% in September. This was the lowest rate since July and came in below market expectations of 2.9%. Nevertheless, inflation remained above the central bank’s 2% target, largely due to higher transport costs, which jumped 6.8% year-on-year, and a 5.1% increase in recreation and culture prices. Food and lodging prices rose 3%, while household goods and services were up 4%. Price gains in other categories were more subdued: alcoholic beverages and tobacco were unchanged, and groceries and non-alcoholic beverages inched up 0.5%. On a monthly basis, consumer prices increased 0.2% in October, falling short of the 0.3% forecast and slowing from the 0.3% rise recorded in the previous month. Meanwhile, core inflation, which excludes volatile food and energy items, climbed 2.8% from a year earlier and 0.4% from the previous month.