SEOUL, Sept. 2 (Xinhua) - South Korea's consumer price inflation bounced back to the 3 percent range last month, affected by a low base effect from a massive mobile carrier discount program implemented a year earlier, statistical ministry data showed Wednesday.

Photo taken on Feb. 22, 2019 shows the buildings shrouded in smog in Seoul, South Korea. (File photo: Xinhua)

The consumer price index (CPI) gained 3.1 percent in August from a year earlier, rising above 3 percent after a brief one-month respite, according to the Ministry of Data and Statistics.

Demand-side inflationary pressure accelerated. The core CPI, which excludes volatile agricultural and oil products, rose 3.1 percent last month, marking its highest increase since December 2023.

The country's inflation has stayed above the central bank's mid-term inflation target of 2 percent for 12 consecutive months since September 2025.

The Bank of Korea (BOK) raised its policy rate by 25 basis points to 3 percent in August, delivering back-to-back rate hikes amid rising worries about inflationary pressure and household debts.

Despite cooling petroleum prices and cheaper farm goods, inflation was skewed by a sharp 26.7 percent surge in mobile phone bills last month, caused by the low base effect from the phone bill discount program a year ago.

In August last year, the country's top wireless carrier, SK Telecom, slashed monthly bills by 50 percent for more than 20 million subscribers to mitigate an exodus of users following a hacking incident.

Service prices advanced 3.7 percent from a year earlier in August, faster than an increase of 2.6 percent in the prior month.

Housing rent, including Jeonse and monthly rent, was up 1.2 percent in August from a year earlier.

Jeonse is South Korea's unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or a deposit, to the landlord.

Oil products' price rose 14.2 percent last month, slowing down from a 15.5 percent increase in the previous month amid the government's maximum price ceiling policy on petroleum.

Prices for gasoline and diesel swelled 11.5 percent and 19.6 percent each, while computer prices surged 23.7 percent amid soaring semiconductor prices.

Prices for industrial products, including oil products and processed food, advanced 3.7 percent in August compared to the same month of last year.

Prices for agricultural, livestock and fishery products declined 2.6 percent year-over-year in August, turning downward from a growth of 0.9 percent in July.

Agricultural product prices dropped 6.7 percent, while those for livestock and fishery products picked up 1.5 percent and 3.8 percent each.

Prices for electricity, natural gas and tap water were up 0.4 percent in August on a yearly basis.

The livelihood items index, which gauges prices for daily necessities, climbed 3.2 percent, while the fresh food index, which measures prices for fish, shellfish, fruit and vegetables, tumbled 6.7 percent last month, recording its steepest fall in nearly five years since October 2021.