SEOUL, Dec 31 (Reuters) – South Korea’s consumer inflation for 2025 slowed to 2.1% from 2.3% in 2024, official data showed on Wednesday, roughly in line with the Bank of Korea’s target of 2% to potentially bolster the case for the bank to pause interest rates at the current level for longer.
The Bank of Korea on November 27 kept interest rates unchanged at 2.50% for a fourth straight meeting and signaled the bank could be nearing the end of its current rate cut cycle.
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For December, the consumer price index (KRCPIY=ECI), opens new tab rose 2.3% from a year earlier, also in line with median forecasts of 2.30%.
The index increased 0.3% on a monthly basis, compared with a 0.2% rise expected by economists.
Reporting by Cynthia Kim, Jihoon Lee; Editing by Chris Reese
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