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South Korea’s consumer prices increased 1.7% year-on-year in August 2025, slowing from July’s 2.1% rise and falling short of market expectations of 2%. It marked the lowest reading since November 2024, largely driven by a temporary drop in telecommunication costs. Communication prices slumped 13.3% after SK Telecom, the nation’s largest mobile carrier, offered a 50% discount on monthly subscription fees to all 24 million users following a data breach. In contrast, the biggest price increases came from food and non-alcoholic beverages (4.9%), miscellaneous goods and services (4.8%), and furnishings, household equipment, and routine maintenance (3.7%). On a monthly basis, consumer prices slipped 0.1% in August, reversing July’s 0.2% gain which was also the consensus forecast.