Ministry of Finance and Economy

In October 2026, consumer prices rose 2.8 percent year on year, as prices of agricultural, livestock, and fishery products declined by 1.7 percent from a year earlier, despite increases in prices of processed foods (2.9%) and other items.   Core inflation, which better reflects underlying price trends by excluding volatile food and energy prices, rose 2.8 percent year on year (2.8% in September). The CPI for living necessities, which consists of items that account for a large share of household spending, rose 2.6 percent year on year (2.5% in September).   The price cap on petroleum products is estimated to have lowered the October consumer inflation rate by 0.8 percentage points. Without the measure, consumer prices are estimated to have risen 3.6 percent year on year in October.   Consumer Price Index (%) 2025 2026 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct y-o-y 2.4 2.4 2.3 2.0 2.0 2.2 2.6 3.1 3.2 2.8 3.1 2.9 2.8 m-o-m 0.3 -0.2 0.3 0.4 0.3 0.3 0.5 0.5 0.1 -0.2 0.2 0.3 0.2     Core Inflation (y-o-y, %) 2025 2026 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct CPI excluding food and energy prices 2.2 2.0 2.0 2.0 2.3 2.2 2.2 2.5 2.5 2.6 3.4 2.8 2.8 CPI excluding agricultural product and petroleum prices 2.5 2.3 2.3 2.3 2.5 2.3 2.2 2.5 2.4 2.5 3.1 2.7 2.8     CPI for living necessities (y-o-y, %) 2025 2026 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct CPI for living necessities 2.5 2.9 2.8 2.2 1.8 2.3 2.9 3.3 3.4 2.5 3.2 2.5 2.6   The government will continue to closely monitor prices of items essential to people’s daily lives and strengthen the structural foundations for price stability. It will also assess potential supply and demand risks for major agricultural, livestock, and fishery products ahead of the winter season, including the kimchi-making season, and take proactive measures to address them. Please refer to the attached files.

The Consumer Price Index was 120.73 (2020=100) in October 2026. The index increased 0.2 percent from the preceding month and rose 2.8 percent from the same month of the previous year. Please refer to the attached pdf for the full report.

On November 2, Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung Il visited the Hyundai Motor and Kia R&D Center in Hwaseong, Gyeonggi Province, and held a meeting with industry representatives to discuss ways to strengthen the competitiveness of the electric vehicle (EV) industry.   The visit and meeting were organized to review the current state of the EV industry and autonomous driving technology development, as well as to gather industry feedback on challenges facing businesses and areas where government support is needed.   During the visit, Deputy Prime Minister Lee inspected autonomous driving test vehicles* scheduled to be deployed in Gwangju Autonomous Driving Demonstration City starting in November 2026 and reviewed progress in vehicle production and technology development. He also received briefings on plans by Hyundai Motor and other Korean companies to develop next-generation EVs and autonomous vehicles.   * EV-based test vehicles designed to validate autonomous driving technologies, with 200 vehicles scheduled for deployment by the end of 2026 and a cumulative total of 3,000 by 2027.   At the subsequent meeting, Deputy Prime Minister Lee stated, “EVs represent the next key battleground for boosting Korea’s potential growth rate.” He noted that Korean companies must achieve technological capabilities on par with those of global leaders within the next two to three years to remain competitive, making rapid adaptation and technological innovation more critical than ever. Representatives from the EV, autonomous vehicle, and automotive parts industries emphasized the need for swift government support to help Korean companies survive intensifying global competition and requested the introduction of production tax credits for EVs. They also called for expanded support to help automotive parts suppliers transition to future mobility technologies, the establishment of a legal framework for introducing a battery leasing system, and an increase in specialized personnel at the agency responsible for autonomous vehicles.   In response, Deputy Prime Minister Lee reaffirmed the government’s commitment to making every effort alongside businesses. He stated that the government would carefully review the industry’s proposals in consultation with relevant ministries and take prompt steps to address them. Regarding production tax credits for EVs, the government would actively participate in discussions at the National Assembly and engage in substantive deliberations. In addition, the government would formulate and announce measures to strengthen the competitiveness of the EV industry in November, reflecting industry feedback raised at the meeting. These measures would include initiatives to enhance autonomous driving technologies and expand R&D in core components and technologies. Please refer to the attached files.