Inflation expectations, which gauge the outlook among consumers over headline inflation for the next 12 months, stood at 4.2 percent in September, down 0.1 percentage point from the previous month, according to the Bank of Korea (BOK).
It continued to slide for the second successive month after hitting a record high of 4.7 percent in July.
To curb inflation, the BOK launched the tightening of its monetary policy in August last year, raising its policy rate in seven steps from 0.5 percent to 2.5 percent. The rate hikes led to lower home prices. The prospective index for housing prices declined nine points over the month to hit a new low of 67 in September, breaking record lows for the second consecutive month.
The composite consumer sentiment index (CCSI) came to 91.4 in September, up 2.6 points from the previous month. The higher index was attributed to the eased measures against the COVID-19 pandemic that propped up consumer spending.
The results were based on a survey of 2,405 households conducted between Sept. 13 and 20.
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