BOK Consumer Sentiment Index rises to 110.8 in January

The Bank of Korea's Composite Consumer Sentiment Index (CCSI) for January 2026 increased by 1.0 point to 110.8. Consumer expectations for the upcoming year's inflation remained at 2.6 percent.

Sentiment Improves Across Key Areas

The Bank of Korea's Composite Consumer Sentiment Index (CCSI) for January 2026 recorded a modest increase, rising by 1.0 point to 110.8, indicating a slight improvement in overall consumer confidence compared to December.

This positive shift was reflected across several key sub-indices.

Consumer sentiment regarding current living standards edged up by one point to 96, while the outlook for future household spending also saw a one-point increase, reaching 111. A more pronounced gain was observed in the assessment of future domestic economic conditions, which rose by two points to 98, signaling a growing sense of optimism about the nation's economic trajectory.

Sentiment on current domestic economic conditions also improved by one point to 90. In contrast, prospective living standards remained stable at 100, and future household income expectations held unchanged at 103. This mixed but generally positive movement suggests a cautious yet improving consumer outlook as the new year commences.

The survey, conducted between January 8 and 15, 2026, gathered responses from 2,254 households nationwide.

Inflation Expectations Hold Steady

Consumer inflation expectations for the upcoming year remained stable at 2.6 percent in January, mirroring the previous month's reading.

The five-year ahead expected inflation rate also held steady at 2.5 percent.

However, the three-year ahead expected inflation rate registered a marginal decrease of 0.1 percentage point, settling at 2.5 percent.

Beyond price stability, other specific indicators from the survey showed varied movements.

Sentiment concerning prospective interest rates increased by two points to 104, suggesting consumer anticipation of further rate adjustments.

Prospective housing prices also saw a notable rise, climbing by three points to 124, indicating increased optimism in the real estate market.

Conversely, prospective employment opportunities experienced a slight decline, falling by one point to 91, suggesting some lingering caution regarding job market prospects.

Fragile Optimism Emerges

The slight increase in the CCSI indicates a fragile but present improvement in consumer confidence.

While inflation expectations remain anchored, the notable rise in housing price sentiment suggests evolving household asset views.

Policymakers will likely interpret these mixed signals as a complex backdrop, balancing growth support with ongoing price stability efforts.