ID :
200817
Fri, 08/12/2011 - 07:01
Auther :
Shortlink :
http://m.oananews.org//node/200817
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Finance minister vows to keep anti-inflation efforts
SEOUL (Yonhap) - South Korea will continue its efforts to stabilize consumer prices as the country still faces unfavorable conditions, the finance minister said Friday.
"With consumer prices continuing to grow more than 4 percent, inflation conditions remain difficult," Finance Minister Bahk Jae-wan told a meeting of economic ministers. "The government should continue anti-inflation efforts."
His remarks came as the country's consumer prices rose 4.7 percent on-year in July, with policymakers conceding that inflation may hover in the 4 percent range this year.
The minister pointed out that South Korea's consumer prices have risen by more than 4 percent in recent months and uncertainties remained in the supply of agricultural produce.
"An undersupply of agricultural produce brought on by the recent downpours and the upcoming Chuseok holidays may pose serious challenges," he said.
Chuseok is one of the nation's biggest traditional holidays, with people preparing special foods and buying presents for friends and relatives that can push up consumer prices.
Bahk painted a slightly rosy picture of the inflation outlook.
"A rise in global economic uncertainties and lowering of international crude oil prices are raising expectations that inflationary pressure will be eased," he said.
Economic uncertainties have been escalating due to last week's downgrade of the U.S. credit rating by Standard and Poor's Ratings Services and lingering fiscal worries in some European countries.
Despite high inflation, the Bank of Korea on Thursday froze the key interest rate at 3.25 percent for the second month, following fears that economic growth may be affected by the latest economic crisis.
"With consumer prices continuing to grow more than 4 percent, inflation conditions remain difficult," Finance Minister Bahk Jae-wan told a meeting of economic ministers. "The government should continue anti-inflation efforts."
His remarks came as the country's consumer prices rose 4.7 percent on-year in July, with policymakers conceding that inflation may hover in the 4 percent range this year.
The minister pointed out that South Korea's consumer prices have risen by more than 4 percent in recent months and uncertainties remained in the supply of agricultural produce.
"An undersupply of agricultural produce brought on by the recent downpours and the upcoming Chuseok holidays may pose serious challenges," he said.
Chuseok is one of the nation's biggest traditional holidays, with people preparing special foods and buying presents for friends and relatives that can push up consumer prices.
Bahk painted a slightly rosy picture of the inflation outlook.
"A rise in global economic uncertainties and lowering of international crude oil prices are raising expectations that inflationary pressure will be eased," he said.
Economic uncertainties have been escalating due to last week's downgrade of the U.S. credit rating by Standard and Poor's Ratings Services and lingering fiscal worries in some European countries.
Despite high inflation, the Bank of Korea on Thursday froze the key interest rate at 3.25 percent for the second month, following fears that economic growth may be affected by the latest economic crisis.
