Deputy Minister Ki Jae: "Temporary Expansion of 2Q Inflation Possible... Proactive Management"

8th Vice Ministers' Meeting on Price Issues

Lee Eok-won, First Vice Minister of Strategy and Finance, is speaking at the Innovation Growth Strategy Review Meeting, Policy Review Meeting, Korean New Deal Review Task Force, and Vice Ministers' Meeting on Prices held at the Government Seoul Office Building on April 2, 2021. Photo by Yonhap News.

[Sejong=Asia Economy Reporter Son Seon-hee] The government announced that it sees a high possibility of an expanded inflation rate in the second quarter and will take preemptive price management measures.

Lee Eok-won, the 1st Vice Minister of the Ministry of Economy and Finance, chaired the 8th Vice Ministerial Meeting on Prices at the Government Seoul Office this morning and said, "The overall consumer price inflation for this year is still unlikely to exceed the 2% price stability target," but added, "Considering the current trend and the low price level in the second quarter of last year, the inflation rate in the second quarter of this year may temporarily expand."

In response, Vice Minister Lee stated, "We will actively respond to ensure that the temporary price increase does not lead to excessive expected inflation by operating a preemptive management response system for price stability in the second quarter," and added, "We will continuously monitor price risks centered on the Vice Ministerial Meeting on Prices, enhance market surveillance functions of related agencies and consumer organizations, and strengthen the price stabilization cooperation system with local governments."

He continued, "We will cooperate with local governments to stabilize local public utility charges," and said, "We will strengthen monitoring of rate adjustments and, if increases are unavoidable, discuss phased increases and staggered timing considering price conditions and the burden on low-income households." Recently, demands for bus fare increases have emerged mainly in local areas due to rising oil prices. While the government acknowledges the necessity, it appears it will monitor to prevent excessive short-term increases.

Today's meeting was held in conjunction with meetings on innovation growth strategies, policy reviews, and the Korean New Deal review, including price issues. Regarding the youth and women employment measures announced last month, Vice Minister Lee said, "We will significantly expand the policy target scale from 790,000 to 1,020,000 plus alpha (α)," and added, "We will do our best to support work experience and build employment safety nets, including 60,000 youth digital jobs and an additional 50,000 supports under the National Employment Support System." He further stated, "To overcome the women's employment crisis, we plan to support the creation of a total of 770,000 women's jobs, including expanding public and private sector jobs," and added, "We will steadily implement employment condition improvement tasks such as employment and startup support, care and employment retention support, and training women in promising future sectors."