Yoon Repeatedly Mentions 'Economic Crisis'... "Top Policy Priority is Stabilizing People's Livelihoods" (Comprehensive)

-"Supplementary Budget Executed but Economic Sentiment Remains Difficult"... "No Distinction Between Central and Local Governments in Economic Crisis"
-Second Half Consumer Price Inflation Realizes 6% Range... Inflationary Pressure Expected to Persist into Next Year

[Image source=Yonhap News]

[Asia Economy Reporters Baek Kyunghwan and Seo Sojeong] President Yoon Suk-yeol stated on the 7th, "Please prioritize policy efforts on stabilizing people’s livelihoods." This reflects concerns that the domestic and international economic conditions, including last month's consumer price inflation hitting a 14-year high, could severely impact the livelihood economy such as prices.

At the Cabinet meeting held at the Yongsan Presidential Office that morning, President Yoon said, "Although we quickly executed supplementary budgets to ease the burden on ordinary citizens, the economy felt by the people remains very difficult," adding, "In the face of the complex crisis in our economy, there can be no division between central and local governments."

In particular, President Yoon urged, "Please prepare without any setbacks for the establishment of mid- to long-term plans aimed at the economic leap and the reconsideration of potential growth rates." He continued, "For stabilizing people’s livelihoods, the newly launched local governments, the Cabinet, and the Presidential Office must all work together with one heart."

The background to President Yoon’s consistent emphasis on stabilizing prices and livelihoods is the expected realization of a 6% range consumer price inflation rate in the second half of this year. Unlike the era of high prices caused by fluctuations in oil prices or domestic agricultural and marine product prices, the ultra-high inflation era, where even imported agricultural and marine products rise simultaneously and substitutes disappear, is truly an unknown world. A 6% range consumer price inflation rate is expected in the second half of the year, a figure not seen since the 2000s. President Yoon previously expressed a sense of crisis daily, saying, "Our yard is entering the typhoon zone, including the economic crisis."

The inflationary trend is expected to continue until next year. Experts have forecast that the consumer price inflation rate for June and September could exceed the current 5% range and enter the 6% range. This is largely due to the base effect from last June and September’s consumer price inflation rates remaining in the 2% range amid unresolved issues such as the Ukraine crisis and supply chain disruptions that stimulate high inflation. Consumer price inflation rates exceeding 6% have not occurred since February 1998 (9.5%).

Park Seok-gil, Chief Economist at JP Morgan, said, "If the current trend continues, the inflation rate in June and September is expected to peak," adding, "Even after that, inflation in the 4% range will continue for a considerable period, making the peak less significant." Joo Won, Head of Research at Hyundai Research Institute, also said, "The consumer price inflation rate could reach the 6% range in June or July."

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