South Korea Oct Inflation 2.4%; Rate Pause Likely

South Korea’s consumer price index rose 2.4% year‑on‑year in October 2025, the fastest pace since July 2024 and above Reuters/market forecasts of about 2.1–2.2%, with monthly inflation at +0.3% versus a 0.0% expectation. Core CPI, excluding volatile food and energy, increased 2.2% year‑on‑year, signaling broad‑based inflationary pressure. A weaker won pushed up energy and food costs and lifted prices across categories including food & non‑alcoholic beverages, transport, restaurants & hotels, household furnishings and miscellaneous goods & services, with notable rises in pork, mackerel and energy. The stronger inflation print reinforces the Bank of Korea’s recent decision to hold its policy rate at 2.50% and bolsters the case for pausing further rate cuts as officials weigh growth support against rising inflation expectations and a housing‑market upswing. Some policymakers remain open to future easing and economists are divided on the timing of any additional cut, while currency moves and global Federal Reserve expectations continue to influence market dynamics.