S. Korea remains dogged by high inflation: finance ministry

SEOUL (Yonhap) - South Korea's inflation remains high despite steady improvements in the country's employment and overall economic conditions, the finance ministry said Thursday.
Rising oil prices, moderating growth rates in advanced countries and the lingering fiscal crisis in Europe are also adding to uncertainties for the nation's export-driven economy, according to the Ministry of Strategy and Finance.
"We are still facing inflation in the 4 percent range although the overall economic and employment situations continue to recover," the ministry said. "We also need to closely monitor economic situations as external uncertainties remain high."
The assessment comes as South Korea has been gripped by rising inflation, fueled by higher oil and commodity prices in the international market.
Last month, the nation's consumer price index, a major gauge of inflation, jumped 4.7 percent from a year earlier, the highest gain this year. It has also exceeded the government's renewed annual inflation target of 4 percent for the seventh straight month.
Heavy rainfall that devastated some of the nation's farmlands last month could continue to disrupt the supply of agricultural goods, possibly driving up the prices of vegetables and fruits.
Prices could get higher next month, as food prices tend to jump due to more demand ahead of Chuseok, one of the nation's biggest holidays, experts said.
"The government will take a proactive approach to short-term factors that could cause price instability such as heavy downpours and the Chuseok holidays. We will also push for structural countermeasures to strengthen the base for price stability," the report said.
The report added that the government will work hard to boost domestic demand and improve overall economic fundamentals in a bid to ensure sustainable growth and job creation for the nation's economy.