South Korean CPI (Aug MM) 0.2% vs. Exp. 0.3% (Prev. -0.2%)

The transmission runs through KTB front ends and swaps, where a cooler sequential read has historically steepened market pricing of BoK accommodation, and secondarily through the won, which tends to soften on narrowing rate differentials against the dollar. The distinction worth drawing is between a monthly miss driven by volatile items such as food and energy and one showing up in core: only the latter has typically shifted BoK rhetoric, since the board has repeatedly looked through supply-side swings. Worth noting is that the BoK's reaction function in recent cycles has been complicated by household debt and housing, so soft inflation has not always translated mechanically into cuts. The follow-ons are the year-on-year and core reads accompanying this release, producer prices, and the tone of subsequent board commentary ahead of the next rate decision.