The Bank of Korea(BOK) has assessed that drops in consumer prices are a short-term phenomenon, dismissing concerns that South Korea will slip into a period of deflation.

The central bank said in a report on Monday that low inflation has been observed in many countries, but consumer prices rebounded after a short period in most cases. 

The BOK said its analysis of five Asian economies as well as the 36 member states of the Organization for Economic Cooperation and Development found many instances of low inflation following the 1997 Asian financial crisis and the 2008 global financial crisis. 

The central bank added that deflation, a continuous decline in the general price level of goods and services, was observed in a few countries such as Japan.

The BOK also said that South Korea's recent record-low inflation is due to a base effect, as the prices of farm and fishery products were relatively higher last year. It projected that the base effect will disappear by the end of this year and consumer prices will rebound.