South Korea’s steps to limit inflation increases paying off — so far

AI Summary

South Korea's inflation has been influenced by the government's efforts to mitigate energy shocks, with consumer price inflation rising to 2.6% year-on-year in April 2026. The rise is attributed to a notable decrease in food prices, contrasting earlier forecasts.

Government policies absorb some of energy shock South Korea’s consumer price inflation accelerated to 2.6% year-on-year in April from 2.2% in March, matching market consensus but below our estimate of 2.8%. The downside surprise was mainly due to a larger-than-expected drop in food prices. Tough inflation reached a 21-month high in April, government measures such ...