South Korea’s consumer prices rose 3.1% year-on-year in August, returning above 3% after a 2.8% rise in July and following 3.1% in May and 3.2% in June, as elevated oil prices and higher mobile service charges lifted the headline rate. Bank of Korea Deputy Governor Lee Ji-ho said September inflation should come in lower as the base effect from last year’s telecommunications discounts fades, but underlying pressures will persist, led by core items. Core inflation accelerated to 3.4% in August from 2.6% in July, its highest level since 3.8% in May 2023, while petroleum price-cap measures and government discount programs for agricultural, livestock and fisheries products moderated the overall increase. Lee said prices will continue rising at a high pace as cost shocks pass through and demand pressures build, with uncertainty surrounding the war in the Middle East still elevated. The government has introduced extensive Chuseok price-stabilization measures, including record discount support and increased supplies of holiday staples.