Inflation in South Korea May Extend Central Bank’s Easing Pause

Inflation in South Korea accelerated in October, driven by a weaker won that pushed up energy and food costs, strengthening the case for the central bank to extend its pause in monetary easing.

Official figures showed annual inflation rose to 2.4%, up from 2.1% in September and above market forecasts, signaling firmer price pressures.

Economists say persistent inflation limits policy flexibility as authorities seek to cool a housing market rally without reigniting broader price increases.

Policy Outlook

The Bank of Korea is closely monitoring inflation dynamics to decide whether maintaining the easing pause is warranted while balancing price stability and growth.