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South Korea’s inflation rate eased to 1.9% in May 2025, the lowest level in five months and below market expectations of 2.1%. The decline follows the Bank of Korea’s decision to cut interest rates for a fourth time in the current easing cycle, aiming to cushion the economy from the impact of recently imposed US tariffs. The central bank also signaled its readiness to implement additional rate cuts over the next three months if needed. In a separate major development, opposition leader Lee Jae-myung is set to become South Korea’s next president, following months of political turmoil and the impeachment of former President Yoon Suk Yeol over his failed attempt to impose martial law. On a monthly basis, consumer prices dropped 0.1% in May, defying forecasts of a 0.1% increase and marking the weakest reading in six months.