SEOUL, June 28 (UPI) — South Korea is not likely to see a letup in high inflation any time soon, Vice Finance Minister Yim Jong-yong warned Tuesday.
The country’s consumer prices jumped 4.1 percent year-on-year in May, much higher than the government’s target of around 3 percent for the year, Yonhap News Agency reported.
“Though many efforts have been made, inflation will likely continue to grow for the time being,” Yim told a weekly price stabilization meeting. “It is a fact that the burden of low and mid-income people increase (due to inflation growth). … In the second half, we will continue to place top priority on price stability.”
Experts have said the rising prices could become a drag on the nation’s economic recovery.
Steps to be taken to curb the trend include easing import taxes on basic goods, releasing agricultural product stockpiles and cracking down on any price-rigging by the corporate sector, the report said.
There are concerns gasoline prices at the pump could rise after refineries withdraw their temporary price cuts early next month. Yim said the government will watch for any business irregularities to minimize the impact on consumers.
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