Inflation expectations in December dropped to the three-percent range for the first time in six months.
 
According to the Bank of Korea(BOK) on Tuesday, expected inflation, which measures consumers’ estimates on price increases over the next 12 months, stood at three-point-eight percent this month, down zero-point-four percentage points from November.
 
The index soared to an all-time high of four-point-seven percent in July and stayed in the four-percent range until last month.
 
Consumers' perceived inflation over the past year also dropped by one-tenth of a percentage point on-month to five percent in December.
 
The BOK attributed the fall to the stabilized prices of vegetables and petroleum products and the won’s appreciation against the U.S. dollar.
 
The consumer sentiment index, which measures how consumers assess national and personal economic conditions in the future, also rose three-point-four points on-month to 89-point-nine this month.