SEOUL, Aug 23 Reuters South Korean consumers39; inflation expectations fell in August after six months of rises, a central bank survey showed on Tuesday, while their assessment of economic conditions improved.

The median of inflation expectations for the next 12 months fell to 4.3 in August from 4.7 in July, which was the highest since the monthly survey of consumers began in February 2002.

Meanwhile, the Consumer Sentiment Index CSI rebounded to 88.0 in August, though still below the 100mark that divides optimism and pessimism, after falling for three straight months to 86.0 in July, which was the lowest since September 2020.

The finding comes two days before the Bank of Korea39;s rate decision on Thursday, following an unprecedented halfpoint rate hike to 2.25 in July.

Asia39;s fourthlargest economy is expected to lose momentum this year as downside risks to exports and consumer spending have risen from slowing global demand and higher interest rates.

South Korea39;s annual inflation accelerated to 6.3 in July from 6.0 in June, hitting the fastest rate since late 1998, while other figures also indicated the pace of price rises may be near a peak. 

The survey polled 2,400 households in urban areas for inflation expectations and consumer sentiment among other topics, between August 816.

Reporting by Jihoon Lee; Editing by Jacqueline Wong

Source Reuters