BOK Expects Core-led Underlying Inflation Trend to Continue in September

The Bank of Korea (BOK) projected today (Sept. 2) that the consumer inflation rate in September will continue its underlying upward trend, led primarily by core items.

Chairing a meeting to inspect inflation trends this morning, BOK Assistant Governor Lee Ji-ho made the remarks, noting, "(The September inflation rate) will be lower than August due to the fading of base effects."

Regarding August consumer inflation, he analyzed, "The growth pace expanded compared to July due to base effects stemming from last year's telecommunications cost discounts, while the capping of petroleum prices and the government's discount policies on agricultural, livestock, and fishery products limited the upward pressure."

He added, "Core inflation expanded significantly, driven largely by the impact of base effects while the upward pace of durable goods prices also widened."

Looking ahead, he forecasted, "While uncertainties surrounding the Middle East conflict remain high, consumer inflation will likely maintain a high upward trend, centered on core inflation, due to the transmission of cost shocks and expanding demand-side pressures."

He also added, "We will monitor the inflation situation with a high sense of vigilance."

Statistics Korea announced earlier in the day that the consumer price index for August stood at 120.05 (2020=100), marking a 3.1% rise from a year earlier.

After dropping from 3.2% in June to 2.8% in July, inflation bounced back into the 3% range.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.