Hong Nam-ki: "Inflationary Pressure to Persist for a While Due to Ukraine Situation"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 3rd that "the International Monetary Fund (IMF) recently revised upward the annual inflation forecasts for major countries, and inflationary pressures are expected to persist for the time being."

At the price-related ministers' meeting held that day, Deputy Prime Minister Hong stated, "Inflation in major advanced countries continues at an unprecedentedly high level due to the prolonged Russia-Ukraine war and other factors." The consumer price inflation rate in April rose 4.8% compared to the same period last year, marking the highest level since October 2008 (4.8%), when the financial crisis occurred.

He said, "We take seriously the fact that the consumer price inflation rate in April recorded the highest level since October 2008," adding, "Looking back at the inflation trends over the past five years, until the first half of 2021, inflation generally remained stable within 2%, but recently, due to the weakening of global supply chains and the Russia-Ukraine situation, we have faced strong external pressures."

He continued, "The government is making every effort to stabilize prices by swiftly implementing various measures decided at recent price-related ministers' meetings," and emphasized, "Stabilizing prices for the living expenses of ordinary citizens is more important and urgent than any other issue, and the current economic team will devote all efforts to price stabilization until the very last moment before stepping down."

Earlier, the government expanded the fuel tax reduction rate to 30% starting this month to stabilize prices. It has also prepared and implemented a 'three-pronged set of measures to ease the burden of high oil prices,' including providing fuel-linked subsidies for commercial freight trucks and buses and reducing the vehicle LPG sales surcharge by 30%.