South Korean inflation likely to rise slightly in September

The rise in fresh food prices ahead of the Chuseok holiday and the hike in gas prices will likely be balanced by the decline in oil prices and discounted car prices due to a temporary excise tax cut put in place until the end of this year. 

"South Korea's both headline and core inflation are likely to have rebounded slightly on a year-on-year basis in September. Month-on-month headline inflation is forecasted at just 0.1%", says Societe Generale. 

Core CPI should show no month-on-month change, though base effects should raise year-on-year inflation by 0.1ppt. 

"The headline inflation will rise above 1% as year-end will be approached and that core inflation will stay around the current level for a considerable period", added Societe Generale.