South Korea said Tuesday that it will intensify efforts to stabilize prices of goods closely related to the daily lives of the working class in a bid to help prevent their livelihood from being affected by sharp price swings.
The finance ministry and other related government agencies said they will focus stabilization efforts on agricultural goods and services, whose prices are more expensive than those in overseas markets. To secure stable supply of agricultural and fishery goods, the government will set aside additional 100 billion won (US$88 million) for next year.
They added that the government will keep tariffs low or further reduce taxes on such imported goods as cosmetics, detergents, sugar,
tires, snacks, garlic and flour to boost price competition with their domestically produced counterparts and eventually induce price
stability.
The moves come amid concerns that prices of vegetables and other major agricultural products remain higher, affecting the bottom line of
the working-class people deemed to be more vulnerable to an economic downturn.
Though the overall consumer prices remain relatively stable, the government said it will continue its efforts to stabilize prices by
improving the overall distribution system, supporting more supply and toughening crackdowns on price rigging and other unfair business
practices for goods and services.
According to Statistics Korea, the consumer price index rose 3.3 percent last month from a year earlier. The number represents a drop from the 4.1 percent spike tallied in the previous month and is slightly lower than the 3.6 percent increase reported for September.
A report by the Organization for Economic Cooperation and Development, however, showed that food prices in South Korea rose 14.1 percent on-year in October, compared to an average 2.6 percent increase for the 33-member organization. It was the second highest gain among the world's leading countries.