Economy / Markets
South Korea's August inflation quickens to 3.1% on telecom base effect, just below 3.2% forecast
South Korea's consumer price index rose 3.1% year on year in August 2026, the Ministry of Data and Statistics said on 2 September, accelerating from 2.8% in July but undershooting a 3.2% Reuters poll forecast as the headline was inflated by a one-off mobile-bill base effect. Mobile phone charges jumped 26.7% on the year after SK Telecom's August 2025 50% customer discount dropped out of the comparison; the Bank of Korea, which raised its policy rate 25 basis points to 3% in August, expects core inflation to retain upward momentum into September.