South Korea Inflation Cools to 2.9% on Price Caps

South Korea's consumer inflation has slowed to 2.9% annually as of September. This marks a decrease from the 3.1% rate recorded in August, aligning with economist expectations. The cooling inflation is largely attributed to active government policy measures aimed at stabilizing prices.

Key among these measures were price caps implemented on domestic petroleum products, which helped to curb inflationary pressures. Additionally, prices for agricultural, livestock, and fisheries products experienced a year-on-year decline for the second consecutive month, further contributing to the moderation. Despite these positive trends, industrial product prices, particularly petroleum and diesel, saw significant year-on-year increases, contributing to upward pressure on import-related costs.