01.09.202523:20:27UTC+00South Korea Inflation Slows More Than Expected

In August 2025, South Korea experienced a 1.7% year-on-year increase in consumer prices, decelerating from the 2.1% rise observed in July and falling below the anticipated market forecast of 2%. This represents the lowest level since November 2024, predominantly influenced by a temporary reduction in telecommunication costs. Specifically, communication prices plummeted by 13.3% after SK Telecom, the country's largest mobile provider, implemented a 50% discount on monthly subscription fees for all 24 million users following a data breach incident. Contrastingly, notable price hikes were recorded in categories such as food and non-alcoholic beverages (4.9%), miscellaneous goods and services (4.8%), and furnishings, household equipment, and routine maintenance (3.7%). On a monthly comparison, consumer prices decreased by 0.1% in August, a reversal from the 0.2% increase recorded in July, which was also the expectation of analysts.