South Korea's consumer inflation is projected to increase in August, driven by the base effect from last year's discount on mobile communication fees, while underlying price pressures remain elevated, the central bank stated following its price assessment meeting.
The country's July Consumer Price Index (CPI) grew 2.8% year-on-year, a deceleration from June's 3.2% increase. This slowdown was primarily attributed to easing fuel and agricultural product price inflation, which resulted from government stabilization measures.
Core CPI, which excludes volatile food and energy items, accelerated to 2.6% from 2.5% in the previous month. This uptick was fueled by rising prices for IT equipment, electric vehicles, and travel-related services.
The central bank indicated it will continue to closely monitor the inflation situation, citing uncertainties stemming from the Middle East conflict and persistent underlying price pressures.
Comments