SEOUL, Aug. 25 (Xinhua) -- South Korea's consumer sentiment fell for the first time in four months, due to a domestic stock market correction and accumulated inflation pressures, central bank data showed Tuesday.
The composite consumer sentiment index (CCSI), which gauges consumers' sentiment toward the economy, slipped 2.3 points from a month earlier to 104.5 in August, marking the first downturn since April, according to the Bank of Korea (BOK). A reading above 100 indicates that optimists outnumbered pessimists.
Despite a strong export-led economy, the domestic stock market suffered a sharp correction amid growing doubts over global artificial intelligence (AI) infrastructure investment.
Households' purchasing power was eroded by high inflation, which was fueled by geopolitical tensions in the Middle East.
The BOK raised its benchmark interest rate by 25 basis points to 2.75 percent in July, its first rate hike in about three and a half years since January 2023.
The sub-index for the current economic situation retreated 5 points to 79 in August compared to the previous month, while the index for economic outlook dipped 3 points to 89.
Inflation expectations, which measure the outlook among consumers over headline inflation for the next 12 months, stood unchanged at 2.7 percent in August on a monthly basis.
The results were based on a survey of 2,244 households conducted from Aug. 7 to 14. ■