S.Korea inflation expectations fall in August after 6-month rise

South Korean consumers' inflation expectations fell in August after a six-month rise, while their assessment of economic conditions improved, a central bank survey showed on Tuesday.

South Korean inflation expectations started to fall after a six-month rise. The median of inflation expectations for the next 12 months fell to 4.3% in August from 4.7% in July, the highest rate since the monthly consumer survey began in February 2002. Meanwhile, the Consumer Confidence Index (CSI) rose to 88.0 in August after falling to 86.0 in July, the lowest since September 2020, but still below the 100 mark separating optimism and pessimism. The finding came two days before the Bank of Korea is due to announce its interest rate decision on Thursday after it raised the rate by half a percentage point to 2.25% in July. Asia's fourth-largest economy is expected to lose momentum this year as downside risks to exports and consumer spending mount amid slowing global demand and rising interest rates. South Korea's annual inflation rose to 6.3% in July from 6.0% in June, the highest since late 1998, while other figures suggested the pace of price growth may be nearing its peak. The survey was conducted between August 8-16 with 2,400 households in urban areas on topics such as inflation expectation and consumer sentiment.   Source: investing.com