▲ Lee Ji-ho, Assistant Governor of the Bank of Korea, speaks at the August 2026 Economic Outlook briefing held at the Bank of Korea in Jung-gu, Seoul, on August 27.
The Bank of Korea (BOK) has assessed that although September's consumer price inflation rate slowed down to the 2% range, the underlying upward pressure on prices actually expanded.
Chairing a price review meeting at the BOK this morning (October 2), BOK Assistant Governor Lee Ji-ho stated, "Although the rates of increase for consumer, core, and living prices all declined in September compared to the previous month, the upward momentum in prices has expanded somewhat when considering the fading of the temporary base effect from August."
He explained that it is necessary to factor in how last year's 50% discount on SK Telecom mobile phone bills artificially lowered August consumer price inflation by 0.6 percentage points, core inflation by 0.8 percentage points, and living inflation by 1.1 percentage points this year.
Assistant Governor Lee analyzed, "In core items, personal service prices continued their steep upward trend, led by airfares and travel costs due to the transmission of cost pressures. The upward momentum in durable goods prices, such as electronics, also widened under the influence of rising semiconductor prices."
He added, "Consumer price inflation in October is also expected to maintain a high level of around 3% as the upward trend in core items continues."
"Looking ahead, consumer prices will likely maintain their high upward trajectory centered around core inflation due to the transmission of cost shocks and expanded demand-side pressures, amid continued high uncertainties surrounding the Middle East war," he said, adding, "We will monitor the price situation with vigilance."
(Photo provided by the Bank of Korea, Yonhap News)
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