South Korea's consumer inflation accelerated to 3.1% last month, largely because a one-month mobile phone fee discount in August a year earlier created a low comparison base. The government estimated inflation would have been about 2.5% without that effect, while an oil price ceiling program reduced the reported rate by 0.5 percentage point; without it, inflation could have reached 3.6%. Mobile phone fees rose 26.7% year over year last month, after falling 21.0% year over year in August last year. The earlier reduction was introduced by SK Telecom (017670), which halved fees for more than 20 million subscribers, its entire customer base, following a mass user exodus after a hacking incident. Ahead of Chuseok, the government will provide 103 billion won to support discounts of up to 40% to 50% on agricultural, livestock and fishery products, supply 183,000 tons of 19 holiday staples, and offer rebates through Onnuri gift certificates at 300 traditional markets. It will also provide 43.4 trillion won in holiday funding for small business owners and small and medium-sized enterprises, 480 billion won in policy financing over the next two months for low- and middle-income households and vulnerable groups, and continue fuel-related support through the end of this year.