BOK says inflation to ease in Sept. but underlying pressures to persist

The Bank of Korea anticipates that inflation will decline in September compared to the previous month, as the effect of base prices diminishes, but the underlying price pressures are likely to remain, especially for core items, according to a statement released on Wednesday. In August, the consumer price index experienced a more rapid increase than the prior month due to a base effect stemming from a discount program initiated by a telecommunications firm the previous year.

Deputy Governor Lee Ji-ho of the central bank conveyed this information during a session dedicated to analyzing inflation patterns. In September, it is projected that consumer price growth will be lower than in August as the base effect dissipates, although the persistent upward trend is expected to continue, particularly concerning core items.

Government figures released earlier indicated that South Korea's consumer prices increased by 3.1 percent in August from the previous year, reflecting elevated oil prices and additional contributions from heightened mobile service subscription charges. The rise in mobile service charges can be attributed to the base effect resulting from extensive discounts provided last year following a hacking incident.

This August figure marked a reversal from the 2.8 percent year-on-year increase observed in July, following surges of 3.1 percent and 3.2 percent in the months preceding it.