Deputy Minister of Economy: "Limited Possibility of Annual Inflation Exceeding 2%... Additional Egg Imports in May"

April 4 'Macroeconomic Finance Meeting' Held
"Early Shipment of Leeks and Onions, Copper for Stockpiling Released at 1-3% Discount"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 4th regarding the consumer price inflation rate exceeding 2%, "The fact that the April inflation rate exceeded 2% on the indicator is largely due to the base effect, as the price level in April last year was significantly low."

At the 'Macroeconomic Financial Meeting' held at the Seoul Banking Hall on the same day, Vice Minister Lee stated, "Considering that the base effect will ease from the third quarter, the possibility of exceeding the annual inflation stabilization target of 2% is limited."

He added, "During this period last year, international oil prices plummeted to the $20 range due to the COVID-19 shock, and prices for services such as travel and culture declined, along with a drop in agricultural product prices caused by increased vegetable shipments. In April, the consumer price inflation rate was 0.1%, and in May, it was -0.3%."

He continued, "In contrast, this April, international oil prices have risen since November last year, recovering to the $60 range, and major agricultural and livestock product prices have remained strong since the second half of last year. The increased volatility was largely driven by supply-side factors rather than demand-side factors."

Vice Minister Lee stated that efforts to stabilize prices will continue to prevent excessive inflation expectations from spreading. He said, "We will promote additional egg imports in May and encourage early shipments of green onions and onions." Additionally, he mentioned, "To alleviate the burden on companies struggling due to the sharp rise in raw material prices, the Public Procurement Service will release copper, aluminum, and tin from its reserves at a 1-3% discount in May."

He emphasized, "According to forecasts from analytical institutions, the possibility of a sharp rise in international oil prices is limited, but we will prepare for any contingencies through contingency plans including supply and demand measures."