South Korea’s inflation rate eased to its lowest level in five years in 2025, signalling a return to greater price stability after the sharp post-pandemic surge that weighed heavily on households and policymakers, the nation’s Yonhap News Agency reports.

Consumer prices rose 2.1% over the year, marginally above the Bank of Korea’s 2% target but well down from the peaks seen earlier in the decade, according to official data. The annual figure marks the weakest inflation reading since 2020, when price growth slowed sharply during the pandemic.

The latest data underline a steady deceleration after inflation jumped to 5.1% in 2022, before moderating to 3.6% in 2023 and 2.3% last year. Even so, price pressures have not disappeared entirely. In December, consumer prices were up 2.3% from a year earlier, overshooting the central bank’s target for a fourth consecutive month.

Officials cited by Yonhap pointed to higher energy costs as a key driver, with petroleum product prices rising more than 6% year on year. Diesel and petrol recorded particularly strong gains, reflecting the impact of a weak won, which has been among the poorest-performing currencies globally over the past year.

Core inflation, which strips out food and energy, stood at 2.3% in December, suggesting underlying pressures remain contained but persistent.