Relieve the burden of high inflation

SEOUL, July 20 (Yonhap) -- Skyrocketing prices are imposing a heavy burden on the livelihoods of middle- and low-income earners these days. The government declared a war against inflation six months ago, only to suffer a crushing defeat. Inflation has been running rampant in almost every field, from daily necessities to oil prices and housing rents. Consumer prices recorded year-on-year growth of more than 4 percent for six months in a row last month, compared with 2 percent-level growth early last year. Core inflation, which excludes price rises in oil and agricultural and fisheries products, recorded 3.7 percent in June. Amid spiraling inflation, the government and the Bank of Korea raised this year's inflation prediction from 3 percent annually to 4 percent, which experts say indicates the seriousness of inflation. What is more worrisome is that the prices are expected to rise further in the second half of this year. Crude oil prices are expected to hover around US$110 per barrel and price fluctuations are expected for agricultural and fisheries products due to inclement weather. Public utility charges, which have been contained, are scheduled to rise one after another in the second half beginning with electricity charges this month. If the scope of hikes in public utility charges is high, it would deal a critical blow to low-income households. Reflecting the seriousness of inflation, President Lee Myung-bak gave special instructions to his economic officials to curb inflation. In a special directive on Wednesday, Lee ordered the government to compare and disclose consumer prices in different cities and provinces nationwide, stepping up his bid to rein in rising inflation. Presiding over a meeting of ministers dealing with inflation-related issues, the president instructed Maeng Hyung-kyu, minister of public administration and security, "to release a comparative table of prices of about 10 major daily necessities in the nation's 16 provinces and metropolitan cities on a monthly basis," presidential spokesman Park Jung-ha said. The president ordered ministers to get firsthand experience of people's burdens and switch their ways of thinking to find a fundamental way of changing the current pricing system, an escape from the typical methods of curbing inflation such as crackdowns and surveillance. The government plans to announce comprehensive anti-inflation measures early next week. The measures should include concrete steps to practically stabilize people's livelihoods. Viable ways to streamline the complicated distribution structure of agricultural, livestock and fisheries products should be worked out. The government is also advised to set up measures to heighten management efficiency in public corporations in order to minimize the hikes in public utility charges. We hope the government will make fundamental and concrete measures to stabilize prices and calm down inflationary psychology.