BOK says inflation to ease in Sept. but underlying pressures to persist
Inflation in September is expected to ease from the previous month as a base effect fades, but underlying price pressures will likely persist, particularly in core items, the central bank said Wednesday. "In August, the consumer price index rose at a faster rate than the previous month due to a base effect resulting from discount programs by a telecommunications company last year," Deputy Gov.…
South Korea's central bank predicts that inflation will decelerate in September compared to the previous month, as the effect of base effects diminishes, according to a statement released on Wednesday. However, the report indicates that underlying price pressures are likely to remain, particularly for core items. In August, the consumer price index experienced higher growth rates than the prior month due to a base effect stemming from a discount program implemented by a telecommunications company the previous year, as Deputy Governor Lee Ji-ho revealed during an inflation trends review meeting.
In September, consumer price growth is anticipated to be lower than in August as the base effect wanes, yet the persistent upward trend is expected to continue, especially in core items. Government data released earlier showed that South Korea's consumer prices increased by 3.1 percent in August compared to a year ago, driven by elevated oil prices and higher mobile service subscription charges.
The latter surge was partly attributable to the base effect resulting from extensive discounts given last year following a hacking incident. The August figure marked a recovery from the 2.8 percent year-on-year increase in July, following growth rates of 3.1 percent and 3.2 percent in the preceding months.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
