South Korea’s annual inflation rate accelerated to 3.1% in May 2026 from 2.6% in April, slightly above market expectations of 3.0%. This marked the highest rate since March 2024 and underscored the mounting impact of higher oil prices linked to the Middle East conflict. Food prices rose 1.6%, up sharply from 0.3% in April, their fastest increase in three months.
Price growth also picked up in several key categories: housing and utilities (1.8% vs 1.7% in April), transport (11.6% vs 9.7%), clothing and footwear (2.8% vs 2.1%), recreation and culture (5.0% vs 3.4%), education (1.3% vs 1.1%), tobacco (0.3% vs 0.1%), and furnishings, household equipment, and routine maintenance (2.6% vs 1.9%).
Inflation remained unchanged for communication (0.6%), restaurants and hotels (2.7%), and miscellaneous goods and services (4.1%). On a monthly basis, consumer prices rose 0.5%, matching April’s pace. Although stable on a month-to-month comparison, it was still the fastest monthly increase since September 2025 and surpassed market forecasts of a 0.3% gain.