Ministry of Economy and Finance

The consumer price index (CPI) in January increased by 2.0% year-on-year (2.3% in December), as the pace of price increases for agricultural, livestock, and fisheries products moderated due to a larger decline in vegetable prices and increased livestock slaughter volumes.   Core inflation, which reflects the underlying trend by excluding volatile food and energy prices, rose by 2.0% year-on-year (2.0% in December). The CPI for living necessities, which tracks items with a high share of household spending, climbed by 2.2% year-on-year (2.8% in December).                                                                                  Consumer Price Index (%) 2025 2026 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan y-o-y 2.2 2.0 2.1 2.1 1.9 2.2 2.1 1.7 2.1 2.4 2.4 2.3 2.0 m-o-m 0.7 0.3 0.2 0.1 -0.1 0.0 0.2 -0.1 0.5 0.3 -0.2 0.3 0.4                                                                                  Core Inflation (y-o-y, %) 2025 2026 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan CPI excluding food and energy prices 1.9 1.8 1.9 2.1 2.0 2.0 2.0 1.3 2.0 2.2 2.0 2.0 2.0 CPI excluding agricultural product and petroleum prices 2.0 1.9 2.1 2.4 2.3 2.4 2.3 1.9 2.4 2.5 2.3 2.3 2.3                                                                                 CPI for living necessities (y-o-y, %) 2025 2026 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan CPI for living necessities 2.5 2.6 2.4 2.4 2.3 2.5 2.5 1.5 2.5 2.5 2.9 2.8 2.2     Given the uncertainties ahead, such as volatility in global oil prices and winter weather conditions, the government will make every effort to stabilize perceived inflation. In particular, it will ensure the smooth implementation of measures to stabilize livelihoods ahead of the Lunar New Year, including supply and demand management of key holiday items, to ease the cost-of-living burden on the public, while proactively mitigating factors contributing to price instability in livestock products through thorough prevention and control of animal infectious diseases, including avian influenza (AI). Please refer to the attached files. 

The Consumer Price Index was 118.03 (2020=100) in January 2026. The index increased 0.4 percent from the preceding month and rose 2.0 percent from the same month of the previous year. Please refer to the attached pdf for the full report.

In December 2025, industrial activity increased for a second consecutive month, following November, with gains recorded in mining and manufacturing (+1.7% m-o-m, -0.3% y-o-y), services (+1.1%, +3.7%), and total industrial production (+1.5%, +1.8%).   Facility investment declined (-3.6% m-o-m, -10.3% y-o-y), while construction investment recorded double-dight growth (+12.1%, -4.2%), and retail sales returned to growth (+0.9%, +1.2%).                                                                                                                                                                                                                                                                                                                   (%)       2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Oct Nov Dec Entire industry m-o-m 0.4 0.0 -0.4 0.4 0.0 0.0 1.2 -0.8 -2.6 0.9 1.5 y-o-y 2.9 2.2 0.5 0.6 -0.5 0.3 2.9 -0.3 -3.6 0.4 1.8 Mining and manufacturing m-o-m -0.8 1.8 -0.5 1.5 0.2 -0.1 1.6 -3.2 -4.3 0.8 1.7 y-o-y 5.3 5.2 2.4 3.5 2.0 2.1 6.0 -3.3 -8.3 -1.2 -0.3 Services m-o-m 0.3 0.0 -0.3 0.7 0.3 0.7 0.9 1.2 -0.5 0.5 1.1 y-o-y 2.1 1.6 0.2 0.6 0.4 1.4 3.2 2.6 0.9 3.0 3.7 Public administration m-o-m -0.5 -0.9 1.7 -2.0 2.4 -3.0 1.6 -0.9 1.3 0.5 -2.6 y-o-y -1.7 -0.5 1.7 -2.1 0.9 -0.4 0.3 -0.6 -2.4 0.5 -0.1   (%)       2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3       Q4       Oct       Nov      Dec Retail sales m-o-m -2.2 -0.3 0.7 -0.4 0.4 -0.9 1.5 0.8 3.6 -3.2 0.9 y-o-y -1.6 -3.1 -1.5 -2.0 -0.3 0.0 1.5 0.8 0.4 0.8 1.2 Facilities investment m-o-m -1.5 -1.4 10.2 -1.8 -1.7 0.0 5.7 -7.9 -14.3 1.7 -3.6 y-o-y -1.4 -3.3 11.5 5.3 5.7 5.3 1.9 -5.4 -4.5 -0.2 -10.3 Construction Investment m-o-m 7.7 -8.2 -3.8 -5.1 -6.4 -3.2 2.7 -8.7 -20.7 6.7 12.1 y-o-y 4.0 -3.1 -9.1 -9.7 -21.2 -17.4 -11.8 -14.3 -24.4 -16.6 -4.2   In the fourth quarter of 2025, following a temporary adjustment in October (with total industrial production falling 2.6% m-o-m) due to base effects from the sharp increase in major industrial activity indicators in the third quarter and the October Chuseok holiday – the first in eight years – industrial activity resumed an improving trend, posting increases for two consecutive months starting in November. For 2025 as a whole, total industrial production expanded at a slower pace year on year (1.5% → 0.5%) due to weak performance in the first half, partly reflecting the impact of martial law-related developments. However, activity picked up markedly in the second half compared with the first half. In particular, retail sales returned to growth for the first time in four years, while services output accelerated (1.1% → 1.9%), indicating a recovery in domestic demand driven by consumption. Construction output also saw a narrower decline in the second half compared with the first half.   Considering the recent favorable preliminary indicators, the economic recovery is expected to continue. Consumer sentiment remained strong in January 2026, with the index reaching 110.8 – exceeding 100 for nine consecutive months for the first time in three years and eight months. In addition, double-digit increases in exports and capital goods imports (January 1-20, 2026), improvements in construction orders, and an expansion of the SOC budget are all expected to support positive momentum in the economy going forward. The government plans to actively manage the macroeconomy to sustain the momentum of the economic recovery, while swiftly pushing forward the tasks outlined in the “2026 Economic Growth Strategy,” including measures to boost potential growth and promote balanced growth across the nation. Please refer to the attached files.