S.Korea's inflation expectations rebound in October

SEOUL, Oct. 25 (Xinhua) -- South Korea's inflation expectations marked the first rebound in three months in October on the back of higher utility costs, central bank data showed Tuesday.

Inflation expectations, which gauge outlook among consumers over headline inflation for the next 12 months, stood at 4.3 percent in October, up 0.1 percentage point from the previous month, according to the Bank of Korea (BOK).

It turned around after sliding from a record high of 4.7 percent in July to 4.3 percent in August and 4.2 percent in September.

Price for electricity, natural gas and tap water among suppliers advanced 2.5 percent in September from the previous month, contributing to the higher inflation expectations.

To counter inflation, the central bank launched the tightening of its monetary policy in August last year, raising its key rate in eight steps from 0.5 percent to 3.0 percent.

The rate hikes led to lower home prices. The prospective index for housing prices declined 3 points over the month to hit a new low of 64 in October, breaking record lows for the third consecutive month.

The composite consumer sentiment index (CCSI) came to 88.8 in October, down 2.6 points from the previous month.

The lower index was attributable to the still high inflation and the fast rate hikes that boosted worries about economic downturn.

The results were based on a survey of 2,321 households conducted between Oct. 7 and 17.