South Korea’s 2026 annual inflation consensus clusters around the 2.7–2.9% and 3.0%+ bands because recent monthly CPI prints have remained sticky near 2.9% year-over-year amid offsetting forces. Energy and industrial-goods prices have stayed elevated from Middle East tensions, while semiconductor and AI-driven demand has lifted core inflation and services costs; the Bank of Korea now projects headline inflation at 2.7% and core at 2.5% for the full year after raising its growth forecast to 3.3%. Traders weigh the central bank’s restrictive stance—benchmark rate held at 3.00% with possible further tightening—against expectations that base effects and a stronger won could pull the annual average toward the lower end of the 2.7–3.0% range by year-end.