SEOUL, July 26 (Xinhua) — South Korea’s inflation expectations kept this year’s downward trend this month amid a weaker inflationary pressure, caused by lower oil products prices, central bank data showed Wednesday.
Inflation expectations, which measure the outlook among consumers over headline inflation for the next 12 months, stood at 3.3 percent in July, down 0.2 percentage points from a month earlier, according to the Bank of Korea (BOK).
The expected inflation slowed this year from 4.0 percent in February to 3.7 percent in April and 3.5 percent in June.
Consumer prices rose 2.7 percent in June from a year earlier, continuing to lose speed for the fifth successive month on the back of cheaper oil products.
Despite the slowdown, headline inflation still topped the BOK’s mid-term inflation target of 2 percent.
The composite consumer sentiment index (CCSI) added 2.5 points from a month earlier to 103.2 in July, keeping an upward trend for the fifth consecutive month.
It was attributed to the slower inflation and the modest consumption recovery.
The results were based on a survey of 2,432 households conducted on July 11-18.