South Korea's inflation remained stable, and expectations for interest rate cuts decreased.

Consumer inflation in South Korea remained stable in November, giving the central bank more reason to maintain caution in its loose monetary policy - authorities are still concerned that the continued rise in the real estate market could lead to financial imbalance. The South Korean Statistics Office said on Tuesday that consumer prices in November rose by 2.4% year-on-year, matching the increase in October. This increase was higher than the median expectation of 2.3% from economists surveyed by the media. Data showed that the core inflation rate, which excludes volatile food and energy prices, fell to 2%, lower than October's 2.2%. Both overall inflation and core inflation are currently hovering around the Bank of Korea's target of 2%. The data reflects that food and fuel prices in South Korea have risen due to the weakening of the Korean won. In addition, fuel costs have also increased since the partial cancellation of fuel tax subsidies by the South Korean government in October. Meanwhile, data from the South Korean Real Estate Commission showed that as of November 24th, apartment prices in Seoul had risen for 43 consecutive weeks. In November, prices of food and non-alcoholic beverages rose by 4.7% year-on-year, housing and utility costs rose by 1.2%, food and accommodation prices rose by 2.9%, and transportation costs also rose by 3.2%. Just days before the release of this inflation data, the Bank of Korea had kept its benchmark interest rate unchanged at 2.5% and slightly raised its economic growth and inflation expectations, while indicating a more balanced policy outlook. Bank of Korea Governor Lee Ju-yeol said that half of the central bank's board members are currently in favor of further interest rate cuts. The Bank of Korea has raised its inflation forecast for 2025 from 2% to 2.1% and also raised its inflation forecast for next year to 2%.