SEOUL, Sept. 2 (Xinhua) -- South Korea's consumer price inflation posted the lowest in nine months due to a sharp temporary fall in telecommunication fees, statistical office data showed Tuesday.

Consumer price index (CPI) rose 1.7 percent in August from a year ago, marking the slowest growth since November last year, according to Statistics Korea.

The headline inflation slipped below the central bank's mid-term inflation target of 2 percent in three months, with 2.2 percent in June and 2.1 percent in July.

The slowing inflation was mainly attributable to a temporary drop in mobile communication charges.

The country's largest mobile carrier SK Telecom offered a 50-percent discount on August bills for its over 20 million users in a bid to help prevent the users from cancelling their membership.

Public service price, including the telecommunication bills, tumbled 3.6 percent in August on a yearly basis, dragging down the overall inflation by 0.42 percentage points.

Price for agricultural, livestock and fishery products advanced 4.8 percent last month amid the prolonged heat wave, faster than an increase of 2.1 percent in the previous month.

Agricultural products price mounted 2.7 percent in August after inching down 0.1 percent in July. Those for livestock and fishery products jumped more than 7 percent last month.

Price for mackerel, peach and glutinous rice surged in double digits, with those for pork, beef, egg and rice swelling in single figures.

Price for pear, carrot, lettuce, white radish and zucchini recorded a double-digit reduction, with those for apple and grape sliding in single digits.

Price for industrial products, including oil products and processed food, picked up 1.7 percent in August on a yearly basis, faster than an expansion of 1.6 percent in the previous month.

Oil products price was down 1.2 percent last month after falling 1.0 percent in the prior month amid cheaper crude oil. Gasoline and kerosene prices retreated 2.0 percent and 3.8 percent each.

Processed food price spiked 4.2 percent in August, raising the overall inflation by 0.36 percentage points.

Price for coffee, ham and bacon soared in double figures, with bread price rising in single digits.

Price for electricity, natural gas and tap water was up 0.3 percent in August, far lower than a growth of 2.7 percent in the previous month.

City gas charges, heating costs and waterworks fee went up in single digits, but electricity bill was down 0.4 percent.

Private service price, including eating-out cost, gained 3.1 percent last month, lifting the inflation by 1.06 percentage points.

The eating-out expense expanded 3.1 percent, while the private service price excluding the dining-out cost increased 3.1 percent.

Housing rent, including Jeonse and monthly rent, was up 0.8 percent in August from a year earlier.

Jeonse is South Korea's unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.

The livelihood items index, which gauges price for daily necessities, added 1.5 percent in August on a yearly basis, while the fresh food index, which measures price for fish, shellfish, fruit and vegetable, climbed 2.1 percent.

Demand-side inflationary pressure turned weak. Core consumer price index, which excludes volatile agricultural and oil products, appreciated 1.9 percent last month, lower than a rise of 2.3 percent in the previous month.

The OECD-method core price, excluding volatile energy and food costs, gained 1.3 percent in the cited month.

Expectations remained high for the Bank of Korea (BOK)'s additional policy rate cuts later this year.

The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year. ■