Ministry of Economy and Finance

The consumer price index (CPI) in June 2025 rose by 2.2% year-on-year (1.9% in May), primarily due to increases in petroleum product prices driven by higher global oil prices, as well as a wider rise in processed food prices. Core inflation, which reflects the underlying trend by excluding volatile food and energy prices, rose by 2.0% year-on-year, the same as in May. The CPI for living necessities climbed by 2.5% year-on-year (2.3% in May) due to rising petroleum prices, while the fresh food price index fell by 1.7% year-on-year (-5.0% in May) mainly owing to declining prices of fresh fruits.                                                                                                                                     Consumer Price Index (%) 2024 2025 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun y-o-y 2.4 2.6 2.0 1.6 1.3 1.5 1.9 2.2 2.0 2.1 2.1 1.9 2.2 m-o-m -0.2 0.3 0.4 0.1 0.0 -0.3 0.4 0.7 0.3 0.2 0.1 -0.1 0.0                                                                         Core Inflation (y-o-y, %) 2024 2025 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun CPI excluding food and energy prices 2.2 2.2 2.1 2.0 1.8 1.9 1.8 1.9 1.8 1.9 2.1 2.0 2.0 CPI excluding agricultural product and petroleum prices 2.0 2.1 1.9 1.8 1.7 1.8 1.8 2.0 1.9 2.1 2.4 2.3 2.4                                                                         CPI for living necessities (y-o-y, %) 2024 2025 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun CPI for living necessities 2.8 3.0 2.1 1.5 1.2 1.6 2.2 2.5 2.6 2.4 2.4 2.3 2.5     Given the lingering uncertainties, including weather conditions and volatility in global oil prices, the government will make an all-out effort through inter-ministerial coordination to stabilize perceived inflation. In particular, as part of efforts to help stabilize food prices that are closely tied to people’s livelihoods, the government will continue providing discounts on agricultural, livestock, and fishery products and maintain tariff quotas on key food ingredients, while responding promptly to price and supply fluctuations in major items. Please refer to the attached files.   

The Consumer Price Index was 116.31(2020=100) in June 2025.  The index remained unchanged from the preceding month and rose 2.2 percent from the same month of the previous year. Please refer to the attached pdf for the full report.

In May 2025, overall industrial production decreased (-1.1% m-o-m, -0.8% y-o-y) for the second consecutive month, as output in both mining and manufacturing (-2.9%, +0.2%) as well as in services (-0.1%,+1.0%) fell.   While retail sales remained flat (0.0% m-o-m, -0.2% y-o-y), facility investment continued to adjust following a sharp 21.3% increase in February, with a decline in May (-4.7% m-o-m) but a continued rise on a yearly basis. (+7.5% y-o-y). The construction sector also continued on a downward trajectory (-3.9%, -20.8%), reflecting ongoing adjustments following accumulated overinvestment.                                                                                                                                                                                                                                                                                                                                (%)        2024 2025 2024   Q1   Apr May Q1 Q2 Q3 Q4 Jan Feb Mar Entire industry - 0.4 0.0 -0.4 0.4 0.0 -1.6 0.7 1.1 -0.8 -1.1 1.5 2.9 2.2 0.5 0.6 -0.5 -3.8 1.2 1.1 0.5 -0.8 Mining and manufacturing - -0.8 1.8 -0.5 1.5 0.2 -2.9 0.7 3.0 -0.6 -2.9 4.1 5.3 5.2 2.4 3.5 1.9 -5.0 6.5 4.5 5.1 0.2 Services - 0.3 0.0 -0.3 0.7 0.3 -0.9 0.8 0.1 -0.1 -0.1 1.1 2.1 1.6 0.2 0.6 0.4 -0.9 1.0 0.9 0.9 1.0   (%)       2024 2025 2024   Q1   Apr May Q1 Q2 Q3 Q4 Jan Feb Mar Retail sales - -2.2 -0.3 0.7 -0.4 0.4 -0.6 1.8 -1.0 -0.9 0.0 -2.1 -1.6 -3.1 -1.5 -2.0 -0.3 0.2 -1.8 0.7 -0.1 -0.2 Facilities investment - -1.5 -1.4 10.2 -1.8 -1.7 -17.2 21.3 -0.5 -0.5 -4.7 2.9 -1.4 -3.3 11.5 5.3 5.7 -6.7 8.0 14.6 8.4 7.5 Construction Investment - 7.7 -8.2 -3.8 -5.1 -6.4 -4.5 3.0 -4.9 -1.4 -3.9 -4.7 4.0 -3.1 -9.1 -9.7 -21.2 -27.4 -19.8 -16.3 -21.1 -20.8   Amid heightened external uncertainties and sustained weakness in domestic demand, key industrial activity indicators – including overall industrial production – largely continued to fall for a second consecutive month. Under these circumstances, the government is committed to swiftly implementing a supplementary budget (KRW 30.5 trillion, as proposed) aimed at revitalizing domestic demand and stabilizing people’s livelihoods, while also making all-out efforts to address trade-related risks such as U.S. tariff negotiations and minimizing the impact on Korean businesses. Please refer to the attached files.