South Korean CPI Inflation Falls

South Korean consumer price index (CPI) inflation fell more than expected in November, giving the Bank of Korea (BOK) more flexibility to further cut interest rates after two consecutive rate reductions.

CPI Data for November

CPI grew 1.5% year-on-year in November, according to government data released on Tuesday. This figure was below expectations of 1.7% but showed a slight increase from 1.3% the previous month. October's CPI was the lowest since early 2021.

CPI fell 0.3% month-on-month, exceeding predictions of a 0.1% decline.

BOK's Interest Rate Decisions

This data was published just a week after the BOK unexpectedly cut interest rates further and indicated that slowing economic growth is anticipated in the coming year.

The annual CPI remained significantly below the BOK's 2% target, suggesting potential for further easing by the central bank to bolster economic growth.

A Reuters poll indicated that analysts largely expect the BOK to implement more rate cuts in February.