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yesterday

South Korea Inflation Hits 2.6% in April on Oil Price Surge

The jump raises pressure on the Bank of Korea to consider rate increases later this month.

A man fills up a gas can at a gas station in Seoul, South Korea, March 9, 2026. REUTERS/Kim Hong-Ji
Gasoline and diesel fuel prices are displayed at a gas station in Seoul on May 5, 2026. The average gasoline price in the country came to 2,008.6 won per liter as of May 2, according to data from the Korea National Oil Corp. (Yonhap)

Overview

  • The 2.6% year-on-year rise reported Wednesday marks the fastest pace since July 2024.
  • Petroleum prices jumped 21.9% from a year earlier after disruptions near the Strait of Hormuz, with diesel up 30.8% and gasoline 21.1%, and international airfares rose 13.5%.
  • Temporary fuel price caps introduced in March helped limit pump price increases, the statistics ministry said.
  • Bank of Korea Senior Deputy Governor Yoo Sang-dai said it is time to consider raising rates and cautioned that May inflation will likely be higher due to high oil and base effects.
  • The three-year government bond yield rose to about 3.675% after the data, a move investors often make when they expect higher interest rates ahead of the May 28 meeting.