S. Korea's inflation unlikely to fall below 4 pct in H1: official

SEOUL, April 14 (Yonhap) -- South Korea's consumer price growth will not likely fall below the 4 percent mark during the first half amid lingering uncertainties over prices of processed products and personal services, a government official said Thursday.
"There are some time lags in the price movement of processed goods and personal services," the official from the finance ministry said on condition of anonymity. "It will not be possible to see the consumer price growth fall below the 4 percent mark during the first half but it could fall below that level in the second half."
In March, South Korea's consumer prices jumped 4.7 percent in March from a year earlier, the fastest hike in 29 months since October 2008, according to government data.
Prices of oil, and agricultural, livestock and fishery products jumped 15.3 percent and 14.9 percent, respectively, from a year earlier.
However, he cited expanding supply of vegetables and other farm produce as a reason to forecast eased inflationary pressure down the road as fresh food prices are likely to drop significantly compared with a year earlier.
His remarks come as inflation-related indicators have been closely monitored as they could hurt low- and mid-income earners by raising their living costs and could eventually undercut the overall economic recovery.
South Korea's government aims to achieve a 5 percent economic growth rate this year, while stabilizing inflation at around 3 percent.
Some experts, however, express skepticism, saying that it would be tough to attain the objectives, given soaring oil prices and other uncertainties hanging over the global economy.
The official noted that the government is currently examining the latest economic factors to adjust its economic outlooks for this year but it will not likely unveil revised figures until June when all first-quarter economic indicators will be available.
kokobj@yna.co.kr