Consumer Sentiment Down for 2nd Month in September

Shoppers browse agricultural products at a supermarket in Seoul, in this file photo taken Oct. 24, 2023. (Image courtesy of Yonhap)

SEOUL, Sept. 25 (Korea Bizwire) — South Korea’s consumer sentiment slipped for a second straight month in September due to a delay in the recovery of domestic demand, a central bank poll showed Wednesday.

The composite consumer sentiment index stood at 100 this month, down from the previous month’s 100.8, according to the survey conducted by the Bank of Korea (BOK).

A reading above 100 means optimists outnumber pessimists.

The central bank said consumer sentiment deteriorated this month amid concerns over a delay in the recovery of private spending and moderating inflation.

Inflation expectations fell this month compared with the previous month.

This month, ordinary people expected consumer prices to rise 2.8 percent for the year ahead, down from the previous month’s 2.9 percent.

The figures are closely watched, as their upward move could cause businesses to raise prices and people to ask for pay raises, thereby resulting in more upward pressure on inflation going forward.

South Korea’s inflation slowed to the lowest level in nearly 3 1/2 years in August on easing prices of farm produce and global oil.

Last month, the country’s central bank froze its key rate for the 13rd straight session at 3.5 percent amid moderating inflation and high household debts.

The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

(Yonhap)