Central bank expects September inflation to ease as base effect fades

  • Central bank expects September inflation to ease as the base effect fades.
  • August consumer prices rose faster because last year’s telecommunications discounts created a base effect.
  • Deputy Gov. Lee Ji-ho spoke Wednesday during an inflation-trends review meeting.

September inflation is expected to slow from August as the base effect from last year’s telecommunications discount programs fades, but underlying price pressures are likely to persist, particularly in core items. Deputy Gov. Lee Ji-ho made the assessment Wednesday during a central bank meeting reviewing inflation trends. The central bank said August’s consumer price index rose faster than in the previous month because of the base effect created by those discounts.

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