South Korea's consumer price inflation slowed for two months on the back of stable prices of farm goods and oil products, a government report showed Tuesday.
Consumer prices rose 1.4 percent in August from a year earlier after gaining 1.6 percent in the previous month, according to Statistics Korea. From a month before, the prices increased 0.2 percent, but it was lower than an average rate of 0.8 percent in August over the past five years.
The consumer price inflation picked up this year from 1 percent in February to 1.7 percent in May before falling to 1.6 percent in July and 1.4 percent August.
This year's figure stayed below the Bank of Korea (BOK)'s inflation target band of 2.5-3.5 percent. The central bank cut its policy rate by a quarter percentage point to 2.25 percent in August amid low inflationary pressures.
The stable prices came as farm goods prices, which typically rise sharply in August on heavy rain and hot weather, gained at a relatively smaller level.
Oil product prices showed stability due to lower global oil prices and the local currency's appreciation against the U.S. dollar, which lowered import prices broadly.
Core consumer prices, which exclude agricultural and oil product prices, advanced 2.4 percent on year in August, marking the lowest since February 2012 when it recorded a 2.5 percent increase./.