Consumer prices to further firm up in May: minister

SEOUL, May 14 (Yonhap) -- South Korea's consumer prices will stabilize further in
May but the government will step up efforts to keep them under control throughout
the year, the nation's top economic policymaker said Thursday.
"Consumer prices for May will decline to the 2-percent range thanks to a stronger
won and stabilizing costs of agriculture, fishery and stock farm products,"
Finance Minister Yoon Jeung-hyun told a weekly economic crisis management
meeting.
Yoon called for related ministries to step up efforts to keep the price level at
around 3 percent throughout this year by "closely monitoring" prices of key
products used in daily life.
According to the National Statistical Office, Consumer prices rose 3.6 percent in
April from a year earlier, slowing from a 3.9 percent on-year growth the previous
month.
The latest figures showed that inflationary pressure is easing after jumping to a
10-year high of 5.9 percent in July due to surging oil prices and a plunging
local currency. A weaker won increases prices by making imports costlier.
The won lost around 25 percent versus the U.S. dollar last year but has since
regained significant ground in recent months. Oil prices also traded at below
US$60 per barrel after nearing $150 per barrel last summer.
On the economic front, meanwhile, Yoon called for more efforts to be made to
avoid wasting taxpayers' money in implementing the 28.4 trillion won extra budget
endorsed by lawmakers last month.
The additional spending is mainly intended to create jobs and revive the economy,
which is feared to lapse into the first recession in more than a decade.
The minister said that he has informed ministries of guidelines detailing how
they should spend taxpayer money. The guidelines, the first of its kind, are
intended to induce "effective" spending and "accelerate the overall economic
recovery," he added.
kokobj@yna.co.kr
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