Inflation expectations edged below four percent on the back of dropping oil prices in March.

According to the Bank of Korea(BOK) on Wednesday, expected inflation, which measures consumers’ estimates on price increases over the next 12 months, stood at three-point-nine percent this month, down one-tenth of a percentage point from February.

It marks the first fall in three months after rising by zero-point-one percentage point for two straight months in January and February.

A BOK official said that the fall is attributed to the recent drop in oil prices and a slight decline in overall consumer prices despite service prices remaining high.

Consumers' perceived inflation over the past year posted five-point-one percent, down zero-point-one percentage point from a month earlier.

Meanwhile, the consumer sentiment index, which measures consumers' current and prospective economic conditions, rose one-point-eight points on-month to 92.