Why does the Bank of Korea expect inflation to ease in September?

The central bank said the August increase was lifted by a base effect tied to last year’s telecommunications discount programs. As that effect fades in September, consumer price growth is expected to be lower than in August.

How high did South Korea consumer inflation rise in August 2026?

Consumer prices rose 3.1 percent from a year earlier in August. The increase was linked to elevated oil prices and higher mobile service subscription charges, which were affected by last year’s discount base effect.

What did the Bank of Korea say about core inflation pressure in August?

Core inflation advanced 3.4 percent on-year in August, showing that underlying price pressure remained elevated. The central bank said that upward trend is expected to continue, particularly in core items.

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

Listen

Summary

The Bank of Korea said Wednesday that inflation in September is expected to ease from August as a base effect fades, while underlying price pressures are likely to persist, especially in core items. Deputy Gov. Lee Ji-ho said the August rise was amplified by last year’s telecommunications discount programs, but the upward trend should continue. Government data showed consumer prices rose 3.1 percent in August from a year earlier. Core inflation climbed 3.4 percent, its highest since May 2023.

Key Facts

Consumer prices in August rose 3.1 percent from a year earlier, according to government data released Wednesday.
The August increase was a rebound from a 2.8 percent on-year rise in July.
Core inflation, which excludes volatile food and energy prices, advanced 3.4 percent in August.
Core inflation reached its highest level since it rose 3.8 percent in May 2023.

By Yonhap

Published Sep 2, 2026 10:40 am KST

People shop at a supermarket in Seoul, Sunday. Yonhap

Inflation in September is expected to ease from the previous month as a base effect fades, but underlying price pressures will likely persist, particularly in core items, the central bank said Wednesday.

"In August, the consumer price index rose at a faster rate than the previous month due to a base effect resulting from discount programs by a telecommunications company last year," Deputy Gov. Lee Ji-ho said during a meeting to review inflation trends.

"In September, consumer price growth is expected to be lower than in August as the base effect fades, but the underlying upward trend is expected to continue, particularly in core items."

Earlier in the day, government data showed that the country's consumer prices rose 3.1 percent in August from a year earlier as oil prices remained elevated.

Higher mobile service subscription charges also contributed to the increase, due to the base effect from large-scale discounts offered last year following a hacking incident.

The August figure marked a rebound from a 2.8 percent on-year rise in July, following increases of 3.1 percent and 3.2 percent in May and June, respectively.

While the base effect is expected to ease headline inflation in September, underlying price pressures remained elevated in August.

Core inflation, which excludes volatile food and energy prices, advanced 3.4 percent on-year in August, marking its highest level since it rose 3.8 percent in May 2023.

Explore More