Inflation slows more than expected and domestic demand remains weak, raising expectations for the Bank of Korea to resume interest rate cuts in October.

According to the Securities Times APP, South Korea's consumer inflation has slowed to the lowest pace so far this year, and several months of inflation data show signs of weak domestic demand, providing more room for the country's central bank to resume its easing cycle at the next monetary policy meeting in October. The South Korean Statistics Office said on Tuesday that the consumer price index (CPI) rose 1.7% year on year, slowing from 2.1% in July. Economists had previously expected South Korea's inflation rate to slow to around 1.9%. The unexpected slowdown in South Korea's inflation this time is mainly attributed to a sharp drop in one-time communication fees for some users.