Gov't to stabilize key food prices amid continued inflationary pressure

SEOUL, Aug. 5 (Yonhap) -- The government said Tuesday it will ramp up efforts to stabilize prices of key food items, such as rice and cabbage, by increasing supply and offering price discounts, amid continued inflationary pressure on households.

The measures were discussed during an economic policy meeting chaired by First Vice Finance Minister Lee Hyoung-il, the finance ministry said.

Under the plan, the government seeks to launch a discount campaign offering 3,000 won (US$2.16) off per 20 kilograms of rice, as the retail price of the staple food has risen sharply in recent weeks, it said.

The government will also double the release volume of napa cabbage, the ministry said.

Support will also continue for other agricultural products heavily impacted by recent heat waves and torrential rains, such as watermelon.

The country's consumer prices grew by more than 2 percent for the second consecutive month in July, mainly driven by higher costs of industrial goods and agricultural products, government data showed.

In the agricultural sector, watermelon prices soared 20.7 percent on-year, while other vegetables, such as lettuce, climbed 30 percent from the same month last year.

khj@yna.co.kr
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