Seoul: Inflation in September is expected to ease from the previous month as a base effect fades, but underlying price pressures will likely persist, particularly in core items, the central bank said Wednesday.

According to Yonhap News Agency, Deputy Gov. Lee Ji-ho highlighted during a meeting to review inflation trends that the consumer price index in August rose at a faster rate than the previous month. This increase was attributed to a base effect resulting from discount programs by a telecommunications company in the previous year.

Government data revealed earlier in the day that consumer prices in the country rose by 3.1 percent in August compared to the previous year, driven by elevated oil prices. Additionally, higher mobile service subscription charges contributed to the increase, resulting from the base effect of last year's large-scale discounts following a hacking incident.

The inflation rate in August marked an increase from a 2.8 percent on-year rise in July, following previous increases of 3.1 percent and 3.2 percent in May and June, respectively. Despite expectations that the base effect will ease headline inflation in September, underlying price pressures remained heightened in August.

Core inflation, which excludes volatile food and energy prices, advanced by 3.4 percent on-year in August. This represents its highest level since a 3.8 percent rise in May 2023, indicating persistent price pressures in core items.