Bank of Korea: "September Consumer Prices to Maintain Underlying Upward Trend Led by Core Items"

"September Inflation Rate Expected to Be Lower Than August Due to Disappearance of Base Effect"

The Bank of Korea stated on the 2nd that "the consumer price inflation rate for September is expected to maintain an underlying upward trend, particularly centered on core items."

Jiho Lee, Deputy Governor of the Bank of Korea. Bank of Korea

Jiho Lee, Deputy Governor of the Bank of Korea, said at a price review meeting held that morning, "With the disappearance of the base effect, the consumer price inflation rate for September will be lower than in August; however, the fundamental upward trend is expected to persist," offering this outlook.

Regarding the August consumer price inflation, he noted, "Due to the significant base effect from the telecommunication fee discounts implemented last August, the inflation rate rose to 3.1%, higher than the previous month's 2.8%. Although the month-on-month increase expanded, decreased maximum oil product prices and the government's discount policy on agricultural, livestock, and fisheries products helped limit the magnitude of the rise." Deputy Governor Lee further stated, "As for the core inflation rate, the continued price increases in personal services and durable goods, combined with the base effect in telecommunication fees, led to a notable increase to 3.4% from the previous month's 2.6%. In the case of the living cost index, it also rose significantly to 3.2% compared to last month's 2.5%, primarily due to the base effect."

He emphasized, "Going forward, consumer prices are likely to maintain strong upward momentum, especially with core inflation, due to the ongoing uncertainty from the Middle East conflict, continued transmission of cost shocks, and expanding demand-side pressures. We will closely monitor price developments with a sense of vigilance."

On this day, the Ministry of Data and Statistics announced that the Consumer Price Index (CPI) for August was 120.05 (2020=100), representing a 3.1% increase from a year earlier. After falling from 3.2% in June to 2.8% in July, the rate rebounded to the 3% range.

This content was produced with the assistance of AI translation services.