The annual inflation rate in South Korea came in at 2% in February, dropping from the 2.2% registered in January, according to Thursday's data from Statistics Korea. The figure came in slightly higher than expected.

On a monthly basis, the Consumer Price Index (CPI) rose 0.3% against a 0.7% rise in the previous month, beating expectations. The same index excluding fresh food and energy rose 1.8% year-on-year, compared to a 1.9% increase in January, and went up 0.1% month-on-month.

South Korea's central bank cut interest rates by 25 basis points last month, bringing the rate to 2.75%, its lowest level since August 2022.