South Korea's CPI is published monthly by Statistics Korea (KOSTAT). It measures changes in the prices paid by consumers for a representative basket of goods and services.

Why It Matters

Korean CPI is the BOK's primary inflation gauge for setting the base rate. The BOK targets 2% annual inflation. Persistent deviation triggers rate adjustments.

Key Components

Housing, food, transportation, and education/childcare costs are major CPI drivers. Korea's high household debt levels make the economy particularly sensitive to rate changes driven by inflation.

Market Impact

Higher-than-expected CPI limits the BOK's ability to cut rates, supporting the won. Lower CPI gives the BOK room for easing, potentially weakening the won.