Rising Agricultural Prices Amid Extreme Heat and Heavy Rain
Yoon Visits Market During Vacation, Closely Monitoring Yongsan Prices
Aiming to Maintain 2% Inflation Target with Item-Specific Measures
On the morning of the 1st, when heatwave warnings continued in most regions nationwide, a farmer in Dasan-myeon, Goryeong-gun, Gyeongbuk, wiped sweat while working in the field under the scorching sun. [Image source=Yonhap News]
As the record-breaking heatwave continues, an emergency has been declared for the 'table price' as well. Despite the recent overall trend of price stabilization, prices of some agricultural products such as vegetables are rising further due to the effects of the heatwave and monsoon rains. The Presidential Office stated, "We are monitoring the price trends" and explained, "We plan to respond to price increases of individual items."
A senior official from the Presidential Office told Asia Economy on the 7th, "We are observing the overall price trends and will take action if additional measures are needed," adding, "If prices of agricultural products such as vegetables rise, we plan to take measures for each individual item."
The reason the Presidential Office is focusing intensively on agricultural product prices is that the recent expansion in price volatility due to climate change is at a concerning level. Last month, consumer prices rose by 2.6% compared to the same month last year, maintaining the '2% range' trend. However, prices of agricultural, livestock, and fishery products surged by 5.5%. In particular, the price increases were significant for items directly related to the table price, such as apples and vegetables like lettuce, spinach, and napa cabbage. This is because the prices of vegetables with short growing cycles have surged due to climate impacts.
President Yoon Suk-yeol also visited Tongyeong Jungang Market on the first day of his summer vacation on the 5th to check the price situation and the opinions of merchants and citizens firsthand. The Presidential Office is also operating the 'Livelihood Price Task Force (TF),' launched in May, on a weekly basis to monitor the supply and demand situation of agricultural products affected by the heatwave and monsoon rains and to prepare structural price stabilization measures.
President Yoon Seok-yeol, who is on summer vacation, visited Tongyeong Central Market in Tongyeong City, Gyeongnam Province on the 5th, greeting merchants and citizens. [Image source=Yonhap News]
However, the Presidential Office expects that overall prices will remain stable if only prices of some individual agricultural products are managed. A senior official explained, "We currently see prices as stable compared to a typical summer season." Economic Chief Secretary Park Chun-seop also recently said, "If temporary factors such as adverse weather improve and no additional external shocks occur, a stable trend in the low to mid 2% range is expected to resume from August."
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