Inflation is expected to edge up in August from the previous month due to a base effect, while lingering Middle East tensions continue to fuel cost-push inflationary pressure, the central bank said Tuesday.

"Consumer prices in July slowed as prices of petroleum and agricultural products fell," Deputy Gov. Lee Ji-ho said during a meeting to review inflation trends. "However, core inflation rose slightly due to higher prices of durable goods amid cost-push inflation."

"In August, inflation is projected to accelerate, driven by the base effect of large-scale discount programs offered by some mobile carriers last year," he added.

Earlier in the day, government data showed that the country's consumer prices rose 2.8 percent last month from a year earlier, falling below the 3 percent mark for the first time in three months.

The slowdown came as oil prices stabilized following a short-lived ceasefire in the Middle East, while government oil price caps also helped ease inflationary pressure.

Oil product prices rose 15.5 percent from a year earlier in July, remaining elevated but slowing from a 24.7 percent on-year increase in June.

Agricultural product prices fell 2.2 percent from a year earlier.

Core inflation, which excludes volatile food and energy prices, advanced 2.6 percent compared with July last year, the sharpest growth since the 2.8 percent growth posted in December 2023.