Vice Minister Ki Jae: "In the Second Half, Inflationary Pressure Expected to Ease... Proactive Response"

Lee Eok-won, Vice Minister of Strategy and Finance, is delivering a welcoming speech at the "22nd Innovation Growth Strategy Review Meeting, COVID-19 Policy Review Meeting, Korean New Deal Review Task Force Meeting, and 16th Price-related Vice Ministers Meeting" held on the 2nd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] Lee Okwon, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 2nd, "Although prices rose by 2.5% in the second quarter, supply-side inflationary pressures are expected to ease somewhat due to the base effect in the second half, resulting in fluctuations around 2%."

On the morning of the 2nd, at the '22nd Innovation Growth Strategy Review Meeting, Policy Review Meeting, Korean New Deal Review Meeting, and the 16th Vice Ministers' Meeting on Prices' held at the Government Seoul Office, Vice Minister Lee said, "We will strengthen preemptive efforts with special vigilance to stabilize the livelihoods of ordinary people and to block excessive inflation expectations."

He added, "Considering the overall price trends and conditions, the economic policy direction for the second half of the year projects this year's inflation rate at 1.8%, within the price stability target of 2%."

Vice Minister Lee also stated, "We will prepare in advance supply expansion and management plans for seasonal goods to ensure stable prices during the upcoming Chuseok holiday," and added, "For petroleum products, which are sensitive to international oil price fluctuations, monitoring through a public-private consultative body will continue, and non-ferrous metals will continue to be sold at discounted prices in July."

He explained, "After the inflation rate recorded 1.1% in the first quarter, supply-side factors such as rising agricultural and livestock prices and international oil prices, as well as the low-price base effect caused by COVID-19 last year, contributed to the rise to 2.5% in the second quarter," but also noted, "In the second half, supply-side inflationary pressures are expected to ease somewhat due to the base effect, with fluctuations expected around 2%."

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