Economic policymakers convened an emergency meeting to address shifting price pressures as inflation figures show a continued slowdown, though specific sectors continue to experience accelerated increases.
Lee Hyung-il, Deputy Prime Minister and Minister of Economy and Finance, hosted an economic pending issues meeting on Nov. 15 to discuss comprehensive price management strategies, according to the Ministry of Economy and Finance.
The gathering included key economic and policy officials, such as Minister of Trade, Industry and Energy Kim Jeong-gwan, Minister of Budget and Planning Park Hong-keun, Presidential Chief of Policy Ha Jun-kyung, Senior Presidential Secretary for Economic Growth Moon Shin-hak, and Fiscal Planning Secretary Ryu Deok-hyun.
Data released by the National Statistics Office indicates that the consumer price index for October rose 2.8% compared to the same month last year, marking a slowdown following previous months according to fnnews.com. The inflation rate stood at 3.1% in August and 2.9% in September, continuing a downward trend for two consecutive months, while maintaining a roughly 3% range over a half-year period.
Despite the broader easing trend, underlying pressures remain visible across specific categories. Processed food inflation increased from 2.1% in September to 2.9% in October, and dining-out price growth widened from 2.5% to 2.9% over the same timeframe according to Financial News. Furthermore, petroleum products jumped 14.9%, while personal services and durable goods recorded high increases of 3.3% and 4.8% respectively as reported by Einfomax.
These developments have complicated official deliberations regarding the eventual termination timing and methodology of the petroleum ceiling price system, a mechanism that has played a major role in curbing recent costs as reported by Yonhap Infomax.
An analysis by the Korea Development Institute estimates that the petroleum price ceiling lowered the consumer price inflation rate by an average of approximately 0.6 percentage points per month between March and October of this year, though prolonged implementation increases fiscal burdens associated with compensating refineries for losses as reported by Yonhap Infomax.
Following the discussions, the ministry announced its next administrative steps. “Based on today’s discussion, we plan to finalize government policies through additional inter-ministerial consultations and gathering opinions from various sectors,” the Ministry of Economy and Finance stated according to Yonhap News.