Government: "Prices Will Rise Further in October"... Wholesale Egg Market to Be Established (Comprehensive)

"Disruptions in Global Value Chains, Concerns Over Prolonged Inflation"
Two Egg Auction Houses Pilot Operation... "Reform of Price Determination Structure"

Carbon Neutrality Sparks 'Greenflation' Concerns... "Checking Reserve Oil Stocks"

Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, presides over and speaks at the 34th Innovation Growth Strategy Review Meeting, the COVID-19 Policy Review Meeting, the Korean New Deal Review Task Force, and the 30th Vice Ministers' Meeting on Prices on the morning of the 8th. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has forecast that this month's consumer price inflation rate will be higher than last month's. To stabilize the price of eggs, one of the major items, it plans to try restructuring by creating a wholesale market.

On the 8th, Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, held a policy review meeting and a vice ministerial meeting on prices at the Government Seoul Office and announced this. Vice Minister Lee predicted, "The consumer price inflation rate in October will be higher than last month's 2.5%."

He emphasized, "Last October's telecommunications fee support acted as a base effect, and uncertainties such as rising international oil prices, disruptions in the Global Value Chain (GVC), and global inflationary pressures are high, so more proactive measures are needed in the fourth quarter."

To stabilize the soaring egg prices downward, a wholesale market will be piloted. Vice Minister Lee said, "Since there is no wholesale market and producers and distributors decide egg prices on a one-to-one basis, we plan to structurally improve the egg price determination system by piloting two auction markets (wholesale markets) within this year and gradually expanding them."

The price of eggs (30 special eggs) rose to 7,800 won right after the Lunar New Year and then dropped to the low 6,000 won range before Chuseok. He said, "Processed food prices are expected to rise following the increase in milk prices," and added, "We will strengthen communication with the industry to prevent opportunistic price hikes."

To ease the industry's burden, additional financial and tax support measures will be reviewed.

Amid growing concerns about 'greenflation' caused by rising raw material prices due to eco-friendly policies such as Carbon Neutral 2050, the government will also check domestic stockpiles such as reserves and monitor international energy prices and supply-demand trends in real time. They will also strengthen cooperation systems to immediately report to the Fair Trade Commission if any signs of unfair practices such as price collusion are detected.

Regarding the GVC issue, Vice Minister Lee warned, "If prolonged, it could delay the global economic recovery and increase inflationary pressures." He said, "Our economy seems to be only limitedly affected by GVC disruptions except for automotive semiconductors and some overseas local production, but we will maintain special vigilance and respond proactively."

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