• Thu. Nov 24th, 2022

Govt. calls on the food industry to minimize price increases

ByStephanie M. Akbar

Sep 23, 2022

A shopper looks at instant noodles at a supermarket in Seoul. (Yonhap)

A South Korean deputy finance minister on Friday urged the food industry to play down rising food prices as the country grapples with high inflation.

The government also plans to expand the supply of agricultural products, including napa cabbage and white radish, to better meet the high demand for kimchi-making events ahead of the winter season, according to the first deputy minister. of Finance, Bang Ki-sun.

“In light of the stabilizing trends in grain prices, we call on (the food sector) to minimize the rise in food prices,” Bang said at a government meeting on the economy.

Food companies in the country have recently raised prices for instant noodles and snacks, citing high commodity prices and a sharp weakness in the Korean currency against the US dollar.

South Korea’s consumer prices rose at a slower pace in August after hitting a 24-year high the previous month as global oil prices retreated. But the country still faces strong inflationary pressure largely due to rising energy and food prices.

Consumer prices, a key gauge of inflation, jumped 5.7% year-on-year last month, slowing from a 6.3% rise in July.

Strong price pressures should prompt the Bank of Korea to raise its policy rate further in the coming months. (Yonhap)

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