Seoul: The central bank said Wednesday it will closely monitor consumer inflation given high living costs, though it projects inflation to gradually trend down near 2 percent. Bank of Korea (BOK) Deputy Gov. Kim Woong made the remarks during a meeting to review inflation trends after government data showed consumer prices rose 2.3 percent on-year in December, remaining above the bank's 2 percent target for the fourth consecutive month.

According to Yonhap News Agency, consumer prices in December rose at a slower pace than the previous month's 2.4 percent, as gains in agricultural, livestock, and fisheries prices eased despite continued increases in oil prices driven by the weak won. Kim noted that although everyday living costs remain elevated in the upper 2 percent range, there will be continued close monitoring of prices, with attention to the impact of the won-dollar exchange rate and seasonal factors.

The BOK expected consumer inflation to gradually ease toward around 2 percent as core inflation remains stable at about 2 percent and falling global oil prices help curb inflationary pressures. For the whole of 2025, the government data showed the country's consumer prices gained 2.1 percent from a year earlier, marking the slowest on-year increase since 2020.