Consumer inflation 2.0 yy, matches forecast
Authorities see inflation maintaining stable trend
Rate cut most likely in Oct, but not a sure thing economist

SEOUL, Sept 3 Reuters South Korea39;s consumer inflation slowed in August to the weakest in nearly 312 years, official data showed on Tuesday, supporting market expectations for an easing of monetary policy as early as next month.

The consumer price index CPI rose 2.0 from a year earlier, after gaining 2.6 the previous month, marking the slowest annual rise since March 2021.

It matched the median 2.0 increase tipped in a Reuters survey of economists and the central bank39;s mediumterm inflation target of 2.

Going forward, unless there is any additional shock from weather conditions or global oil prices, consumer inflation is expected to stabilise in the lower 2 range, said Vice Finance Minister Kim Beomseok.

Last month, the Bank of Korea held interest rates steady at their highest in nearly 16 years but revived expectations for a policy easing that some economists see happening as soon as October as growth concerns overshadow inflation worries.

The central bank said Tuesday39;s data showed inflation was stabilising more quickly than in other major economies and it expected prices to maintain a stable trend.

The data supports a rate cut in October, which is seen most likely for now, although it is still not a sure thing due to growing household debt, said Ahn Jaekyun, a fixedincome analyst at Shinhan…