Kim Yong-beom's Fifth Inflation Warning: "Q2 Inflation Rate Likely to Be High" (Update)

Chairing the 9th Policy Review Meeting on the 12th
"Signs of Price Increases in Oil, Raw Materials, and Grains"

Kim Yong-beom, the 1st Vice Minister of Strategy and Finance, is delivering the opening remarks at the "9th Innovation Growth Strategy Review Meeting" held on the 12th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, stated regarding the rise in 'table prices' such as rice, eggs, green onions, and onions, "There is a possibility that the inflation rate will temporarily rise in the second quarter." This is also the fifth time this year he has mentioned the possibility of inflation.

On the 12th, Vice Minister Kim made these remarks at the Government Seoul Office during the '9th Innovation Growth Strategy Review Meeting, Policy Review Meeting, Korean New Deal Review Meeting, and 5th Price-Related Vice Ministers' Meeting.'

Vice Minister Kim said, "Due to the significantly increased liquidity during the COVID-19 response process and the expectation of economic improvement following vaccination, the expected inflation rates of major countries are rising." This is his fifth mention of inflation this year.

He diagnosed, "The price conditions in the second quarter of this year are challenging," adding, "Signs of price increases in oil, raw materials, and grains are appearing."

He further forecasted, "Considering that prices were unusually low in the second quarter of last year, there is a possibility that the inflation rate will temporarily be high in the second quarter of this year." According to the Ministry of Economy and Finance, the consumer price inflation rate in the second quarter of last year was -0.1%.

Earlier, on the 7th, according to the Food and Agriculture Organization (FAO) announcement disclosed by the Ministry of Agriculture, Food and Rural Affairs, the global food price index has been rising for nine consecutive months.

Regarding this, Vice Minister Kim said, "Prices of some processed foods such as bread and cooking oil have risen, and there is additional upward pressure on feed prices," adding, "We will support private specialized companies utilizing overseas supply chains with financial aid and strive to expand the food self-sufficiency base by establishing a mid- to long-term national food plan."

He also reported on trends in direct jobs funded by government finances. He said, "Last week, we provided 275,000 jobs and prepared a supplementary budget containing emergency employment measures," and informed, "As of the end of last month, 787,000 people are participating in this year's direct job projects, which are progressing smoothly."

He added, "We will also strive to ensure that local government-led job projects are promptly promoted," and "We will meticulously prepare in advance with related ministries so that the additional supplementary budget job projects can be implemented immediately upon National Assembly approval."

Vice Minister Kim emphasized, "We will do our best to respond to price instability and serve as a bridge in the labor market, striving to become a more efficient government."

Meanwhile, on the same day, Vice Minister Kim mentioned plans to invest 9.7 trillion won by 2025 in the government's digital infrastructure project, the 'Intelligent (AI) Government.'

This content was produced with the assistance of AI translation services.