South Korea June Inflation Rises 2.2% with 4.6% Processed Foods Increase; Chile CPI Falls 0.4%, Annual Inflation at 4.1%

In June 2025, South Korea's consumer price index (CPI) rose by 2.2% year-on-year, slightly exceeding estimates of 2.1%. This increase marks the highest inflation rate in five months and represents a rebound to above 2% after two months. The rise was driven primarily by higher prices for gasoline and food products, with processed foods increasing by 4.6%. Month-on-month, the CPI remained unchanged, while the core CPI, excluding food and energy, rose 2.0% year-on-year. Meanwhile, Chile experienced a contrasting trend in June 2025, with its CPI declining by 0.4% month-on-month, a drop twice as large as expected. This decrease was influenced by falling prices in items such as lemons and meat, although some prices, like bread and certain medications, increased. Chile's annual inflation rate fell by three-tenths to 4.1%, the largest monthly decline since late 2023. Analysts anticipate that Chile's inflation will continue to decrease towards the end of the year, potentially prompting the central bank to resume interest rate cuts.