(LEAD) Gov't seeks to stabilize prices before Lunar New Year holiday

(ATTN: UPDATES throughout with President Lee's comments)
SEOUL, Jan. 20 (Yonhap) -- President Lee Myung-bak called Wednesday for his
government to step up efforts to curb inflation ahead of the Lunar New Year's Day
next month, one of the country's largest holidays.

"Keeping consumer price in check is a very important task each year especially
around such a national holiday," Lee said during his weekly emergency economic
meeting, according to Lee's spokesman Park Sun-kyoo. This week's meeting was held
at a discount store in northern Seoul, in order to display the president's will
to handle the economic situation "on the scene".
"Consumer prices are important because they are an economic index to which
citizens are very sensitive," he added.
Lee also said related officials should pool their wisdom to craft ways to manage
consumer price effectively.
In its report to the president the same day, meanwhile, the government said that
it will intensify efforts to stabilize consumer prices, a move aimed at reducing
the burden on those in the low and middle income brackets caused by a hike in the
cost of daily necessities.
According to measures jointly unveiled by the economy-related ministries, the
government will closely monitor market prices for 24 items that could fluctuate
sharply ahead of the upcoming Lunar New Year holiday.
The Lunar New Year holiday, which falls on Feb. 13-15, is one of the nation's
largest traditional holidays when millions of people visit their hometowns to see
relatives and pay respects to their ancestors. The period usually witnesses a
hike in overall consumer prices due to increasing demand.
"Despite improving economic conditions, the benefits are not being felt by
ordinary people due to contracting incomes and a frozen labor market. The recent
cold spell and other factors are also raising concerns over possible price
instability," the government said in a press release.
"Against this backdrop, we need to intensify efforts to stabilize the livelihood
of our people and actively respond to any price-disturbing factors," it added.
Prices for 18 agricultural, dairy and fishery products will be monitored by the
government on a daily basis, while costs for six service-related activities,
including hair cuts, will also be closely watched, the government said.
Supplies will be tripled to meet an expected spike in demand and to help
stabilize consumer prices, it added.
More energy subsides will be given to low-income people for gas and briquettes
used to heat their homes, as the recent cold spell is feared to send energy bills
sharply higher, according to the government.
Price collusion will also be among the government's main targets. The government
noted that it will crackdown on price rigging activities in the energy and
communications fields, while bread and other daily necessities will also be on
its watch list.
kokobj@yna.co.kr
(END)

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