Downpours prompt Seoul to step up anti-inflation efforts

SEOUL, July 29 (Yonhap) -- South Korea will ramp up its efforts to stabilize prices amid growing concerns that the recent heavy rains could drive up prices of agricultural products by causing supply disruptions, the finance ministry said Friday.
South Korea has been pounded by heavy rains over the past few days, with Seoul and its surrounding areas bearing the brunt of the damage. Some farming regions in the central part of the peninsula were also hit by the worst rainfall in decades, spawning concerns of price spikes for vegetables and agricultural items.
"The government is now considering discussing possible supply disruptions of farming goods during the price stabilization meeting to be held next week," a finance ministry official said.
The meeting, scheduled for Thursday, comes as South Korea's inflation has remained stubbornly high over the past months, mostly driven by rising oil and commodity prices. Surging food prices also play a role in driving up inflationary pressure.
Last month, the nation's consumer price index, a major gauge of inflation, jumped 4.4 percent from a year earlier, exceeding the government's annual inflation target of 4 percent for the sixth straight month.
The finance ministry and the agriculture ministry said that the recent heavy rainfalls destroyed some farming lands and roads in Seoul and its surrounding areas but its impact on the overall supply chains might remain "limited" at this moment.
Still, policymakers remain worried that consumer prices could jump due to possible supply disruptions. South Korea will announce its July consumer prices on Monday.
"During the price stabilization meeting next week, all related ministries will closely monitor the impact that the prolonged rainy season and the latest heavy rainfall could have on prices of farming goods and other service charges and work hard to come up with countermeasures," another ministry official said.