Consumer sentiment in the country improved for the second consecutive month in January on slowing inflation and hopes for an end to the U.S. Federal Reserve’s rate hikes.

According to the Bank of Korea on Wednesday, the composite consumer sentiment index rose one-point-nine points on-month to stand at 101-point-six in January, surpassing the 100-point threshold to indicate that optimists outnumber pessimists.

The January figure marks the highest since August 2023, exceeding the 100-point-mark for the first time in five months.

The consumer sentiment index for housing prices, however, inched down one point to 92 in January to drop for the fourth consecutive month amid concerns about project financing, tightened regulations on loans and high interest rates.

Expected inflation for the year ahead marked three percent in January, down zero-point-two percentage points from the previous month.