01.09.202523:00:00UTC+00South Korea's Inflation Rate Cools in August, Hits 1.7%

South Korea's Consumer Price Index (CPI) growth has decelerated significantly, settling at 1.7% in August 2025, according to the latest data update on September 1, 2025. This marks a notable drop from the 2.1% year-over-year growth recorded in July 2025.

The moderating CPI indicates a cooling in inflationary pressures, suggesting a potential easing of cost burdens on South Korean households as well as businesses. This recent data reflects a broader context of stabilizing price levels, which may offer some relief from economic constraints as the nation navigates post-pandemic recovery and global market volatility.

Economists and policy makers will likely scrutinize these figures to assess their implications for future monetary policy decisions, especially in light of long-term economic strategic planning. As South Korea continues to grapple with external and domestic economic challenges, the slower rise in CPI reflects a pivot point that may affect fiscal decisions in the forthcoming months.