S. Korea launches pan-gov't task force on price inflation of everyday items

SEOUL, May 3 (Yonhap) -- The government launched a task force Friday in charge of monitoring and managing supplies and prices of fresh food and other everyday items as part of efforts to curb still-high inflation, the finance ministry said.

The launch of the new entity came as inflationary pressure in South Korea remains high due mainly to high prices of fruits and other farm produce, as well as energy, amid unfavorable weather conditions and volatility in global oil prices.

The task force will monitor retail prices of key items, devise measures to reform logistics structures and ensure stable prices in close cooperation among relevant ministries.

"We will beef up efforts to manage prices of items that affect the everyday lives of the people until we reach the target rate of 2 percent," the ministry said in a release.

The government plans to reduce tariffs on some fruit and vegetable imports and increase the release of government reserves of farm produce.

It has asked companies to join such efforts given the recent extension of the fuel tax cut and the tariff quota reduction on imported raw materials, the ministry said.

In April, consumer prices, a key gauge of inflation, fell below 3 percent for the first time in three months to come to 2.9 percent, but prices of fresh food items soared 1.91 percent on-year, driven by high-flying fruit prices.

graceoh@yna.co.kr
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