In August, South Korea's consumer prices rose by 2 percent year-on-year, marking the slowest increase since March 2021. This was attributed to easing prices of farm produce and global oil. The country experienced a fifth consecutive month with price growth staying below 3 percent. The government expects to reach the target inflation rate of 2 percent by the end of 2024, with the finance ministry projecting a 2.6 percent rise in prices for this year. The weakening inflationary pressure was attributed to falling global oil prices and easing farm produce prices, with agricultural products climbing 3.6 percent and prices of fruits remaining high due to supply shortages. Service prices gained 2.3 percent year-on-year in August, while core inflation, excluding volatile food and energy prices, added 2.1 percent, the weakest level since November 2021. The Bank of Korea kept interest rates unchanged at 3.5 percent in August, the highest level in about 16 years, in consideration of rising home prices and surging household debts despite weak domestic demand. Some economists forecast a pivot in around October, while the central bank focuses on stabilizing prices and ensuring financial stability. First Vice Finance Minister Kim Beom-seok stated that consumer inflation is expected to stabilize in the lower 2 percent range, emphasizing the country's recovery track led by exports and the government's commitment to supporting the people and stabilizing prices.