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Consumer sentiment highest since 2017 as 'trust in price stability' strong: BOK

Published: 25 Nov. 2025, 19:34 Updated: 25 Nov. 2025, 20:03

A shopper looks at the price of apples at a supermarket in Seoul on Oct. 19. [NEWS1]

Consumer sentiment rebounded sharply in November, reaching its highest level in eight years, as easing uncertainty over Korea-U. S. tariff negotiations and stronger-than-expected economic growth boosted confidence.

The Composite Consumer Sentiment Index (CCSI) rose by 2.6 points from the previous month to 112.4, according to the Bank of Korea’s Consumer Survey for November, released Tuesday. It was the first increase in three months and the highest reading since November 2017, when the index hit 113.9. The data was based on a nationwide survey of 2,500 households conducted between Nov. 11 and 18.

The CCSI is a weighted average of six indexes reflecting consumer views on the economy, household finances and spending plans. A reading above 100 indicates that consumer sentiment is more optimistic than the long-term average, based on data from the past 20 years, which would be from 2003 to 2024.

Analysts said the jump in confidence was driven by the recent resolution of Korea-U. S. tariff negotiations, stronger semiconductor exports and Korea’s third-quarter GDP growth of 1.2 percent, which beat expectations of 1.1 percent.

A breakdown of the survey showed improvements across key subindexes. The index for current economic conditions rose from 91 to 96, while the outlook for future economic conditions climbed from 94 to 102 — signaling that consumers felt both the present and the future economic environment had improved.

The one-year expected inflation rate remained steady at 2.6 percent as October, helped by stable prices in agricultural, livestock and fisheries products and limited changes in public utility fees. However, the three-year and five-year expected inflation rates both edged down by 0.1 percentage points from the previous month, to 2.5 percent.

Seoul apartment buildings are seen from central Seoul's Namsan on Nov. 24, 2025. [YONHAP]

“Even with the weakening of the won, consumers still perceive overall price trends as stable,” said Lee Hye-young, head of economic sentiment at the Bank of Korea. “As long-term inflation expectations continue to decline gradually, public trust in price stability remains intact.”

The index for housing price expectations one year from now fell to 119, down three points from 122 in October. The index had risen for two consecutive months, from 112 in September to 122 in October, before turning downward this month. The government’s tightened lending regulations and new housing supply measures have slowed apartment price increases, particularly in the greater Seoul area.

Still, expectations that housing prices will rise remain elevated. November’s index reading of 119 was nearly on par with the 120 seen in June — before the June 27 lending restrictions — and well above the long-term average of 107. A reading over 100 means more respondents expect prices to go up. “Although the index dipped compared to last month, it remains higher than immediately after the June 27 household debt measures,” Lee said. “This shows that expectations for housing price gains are still strong.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YU-MI [[email protected]]