South Korea consumer inflation eases to five-month low

SEOUL, Feb 3 (Reuters) - ⁠South Korea's ⁠consumer ‍inflation eased to a five-month low in January, largely in line with market expectations, government ‍data showed on Tuesday.

The consumer price index (CPI) rose ​2.0% from a year earlier, compared with gains of 2.3% ​in the previous month and a median 2.05% increase tipped in a Reuters poll of economists.

It marked the slowest year-on-year rise since ​August, after four months above the central bank's medium-term target of 2.0%.

The Bank of Korea last ​month signalled an end to its current easing cycle after keeping interest ‌rates unchanged, prioritising foreign exchange stability in its first policy meeting of the year amid ​a weak won.

The won has ⁠weakened 0.8% against the dollar so far this year to 1,451.5 per dollar, after ‌ending 2025 2.3% higher on a series of policy measures rolled out in December to stabilise the currency.

Last month, ‌CPI rose 0.4% on a monthly basis, after rising 0.3% in ‌the previous month, also roughly matching the median forecast of a 0.44% rise. Prices of petroleum products fell 2.5%, while ‍agricultural products rose 1.5%.

Core CPI, excluding volatile food and energy prices, was 2.0% higher ⁠from a year earlier, rising at the same pace as in the previous month, according to the Ministry of Data and Statistics.

(Reporting by Jihoon Lee; Editing by Chris Reese and Cynthia Osterman)

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