Inflation expectations, which gauge the outlook among consumers over headline inflation for the next 12 months, stood at 4.3 percent in August, according to the Bank of Korea (BOK).
It was down from a record high of 4.7 percent tallied a month earlier, marking the first slide since December 2021.
Despite the lower figure, expectations ran high for the central bank to raise its policy rate at its rate-setting meeting later this week.
To counter runaway inflation, the BOK lifted its benchmark interest rate by half a percentage point to 2.25 percent in July, delivering the first-ever 50-basis-point rate hike.
The country's consumer prices soared 6.3 percent in July from a year earlier, posting the fastest increase in almost 24 years since November 1998.
The composite consumer sentiment index (CCSI) came to 88.8 in August, up 2.8 points from the previous month.
It recorded the first rebound in four months as the moderated measures against the COVID-19 pandemic boosted the services industry.
The results were based on a survey of 2,400 households conducted between Aug. 8 and 16.
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