South Korea's consumer prices rose 2.1% in April from a year earlier, according to government data released Friday.

On a monthly basis, the Consumer Price Index (CPI) increased by 0.1%.

Core inflation, which excludes food and energy, also rose 2.1% year-on-year and 0.4% month-on-month, accelerating from 1.9% year-on-year and 0.2% month-on-month in March.

Category-wise, prices for household goods surged 1.5%, health costs increased by 0.8%, and miscellaneous goods and services rose by 1.2%.

Conversely, food and non-alcoholic beverages declined by 0.6%, and transport costs fell by 1.0%. Prices for clothing, housing, and communication remained unchanged.

Meanwhile, South Korea's exports showed unexpected resilience in April, buoyed by strong demand for semiconductors despite the drag from US tariffs.

The trade performance was better than feared, though analysts remain cautious about the outlook for the quarter due to growing concerns over global trade tensions, particularly affecting the country's key auto sector.

In light of South Korea's weaker-than-expected first-quarter GDP contraction, ING Research has lowered its 2025 annual GDP growth forecast to 0.4%.

Despite this, the firm expects a rebound in the second quarter, with GDP growth projected to rise by 0.2% quarter-on-quarter.

ING anticipates that domestic factors, including easing political uncertainty and more assertive fiscal spending, will drive the recovery, rather than external demand, which remains subdued.