Deputy Prime Minister Hong Nam-ki presides over a meeting on the 5th
Consumer price inflation concerns 4% last month for first time in 10 years
▲ While the average gasoline price in Seoul has exceeded 2,000 won, vehicles are refueling in a row at a relatively inexpensive gas station in Seoul.
yunhap news
The government will hold a price-related ministerial meeting next week and come up with additional price measures. While plans to expand the range of fuel tax cuts are expected, attention is being paid to whether measures for prices in food and telecommunication fields will be introduced together.
According to the Ministry of Strategy and Finance on the 2nd, Deputy Prime Minister and Minister of Economy Hong Nam-ki will preside over the price-related ministerial meeting on the 5th. This is the second time the current government is holding a ministerial-level meeting on inflation, following the 4th of last month. The government held a price-related ministerial meeting for the first time in five years since January 2017, during the Park Geun-hye administration, when concerns regarding inflation were raised last month.
As the ministerial level meeting is held, it seems that heavy measures will be taken. There are many observations that a plan to increase the fuel tax cut from the current 20% to 30% will be announced. If the cut rate is expanded to the legal maximum of 30%, the tax per liter of gasoline will be reduced to 574 won. It is 246 won less than before the fuel tax cut, and 82 won less than when the 20% cut rate was applied. If the fuel tax flexible tax rate is also adjusted, it can be reduced by 37% compared to the existing fuel tax (820 won per liter).
It is highly likely that measures once morest the price of processed food, dining out, and livestock and fishery products will be introduced. Earlier, 1st Vice Minister of Strategy and Finance Lee Won Lee said at a meeting of the vice-ministers on price relations presided over on the 1st, saying, “In the case of agricultural and fishery products, we will continue to support discount coupons in April, while continuing to promote discount events such as marts in connection with this to ease the burden on the shopping cart for the lower class. I will,” he said. The government is also preparing for inflation measures in the telecommunication sector. Plans to induce competition among telecommunication companies and further cut the wholesale price of thrifty phones are under discussion.
Meanwhile, on the 5th, the National Statistical Office announced the ‘March Consumer Price Trend’, drawing attention. Some are concerned that it will record the 4% level for the first time in 10 years since December 2011 (4.2%).
Reporter Sejong Lim Joo-hyung
