South Korea inflation climbs to 3.1%, fueling rate-hike speculation

South Korea’s August inflation rose to 3.1% year over year, returning above 3% after a July dip, with the gain helped by a base effect from last year’s mobile-price discount and stronger core and services components, while food prices and dining-out costs also climbed ahead of upcoming holidays. Core inflation accelerated and the living-cost index rose, signaling sustained price pressure despite government measures that pushed agricultural/livestock prices down due to discount programs. Analysts say the upside drift supports a further Bank of Korea tightening cycle as inflation has stayed above the 2% target since March. In Pakistan, however, inflation jumped to 11.1% in August from 9.2% the prior month, driven mainly by higher food and energy prices, with transport costs surging and perishable foods rising sharply. The government’s petroleum-price revisions and a policy-rate hike to 11.50% underscore the broader inflationary pressures and policy responses in the region. Taken together, the regional inflation picture shows divergent trajectories: South Korea facing domestic price pressures that could prompt tighter monetary policy, and Pakistan dealing with volatile food and energy-driven inflation amid tightening macro conditions.