South Korea's inflation expectations stayed flat in August in line with a downward trend in consumer prices, a central bank survey showed Tuesday.
Ordinary people expected consumer prices in August to rise 3.3 percent for the year ahead, remaining flat from what was surveyed a month earlier, according to the poll conducted by the Bank of Korea (BOK).
The reading matches the 3.3 percent logged in May last year, the central bank said.
The figures are closely watched, as their upward move could cause businesses to raise prices and people to ask for pay raises, thereby resulting in more upward pressure on inflation going forward.
The country's consumer price growth slowed for the sixth straight month in July to the lowest level in 25 months on the back of lower oil prices.
Consumer prices, a key gauge of inflation, rose 2.3 percent last month from a year earlier, compared with a 2.7 percent increase in June, marking the lowest advance since June 2021.
In June, inflation fell below 3 percent for the first time since September 2021.
Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the fourth straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.
The central bank is widely expected to stand pat again at this week's rate-setting meeting.
The composite consumer sentiment index stood at 103.1 in August, down from 103.2 the previous month, snapping the fifth consecutive month of rise, according to the survey.
A reading above 100 means optimists outnumber pessimists.
Source: Yonhap News Agency