By Kang Yoon-seung
SEOUL, Sept. 15 (Yonhap) — South Korea’s inflation rate is projected to start decreasing in October due to persisting difficulties with the high cost of oil, the nation’s chief economic policymaker said on Friday.
“This year, the country’s consumer prices are continuing on a path of decline,” Finance Minister Choo Kyung-ho said during a government meeting ahead of the Chuseok holiday.
He noted that risks, such as more expensive global crude prices, are still present and must be monitored carefully. The Dubai crude price, South Korea’s benchmark, was $86.46 per barrel in August, an increase from the $80.45 seen in the prior month. This month, global oil prices have kept rising due to cuts in supply.
Consumer prices, a key indicator of inflation, rose in August from the 2.3% increase in July. It was the highest year-on-year growth since the 3.7% increase seen in April.
The finance minister added that the government will take all necessary steps to stabilize the prices of major food items before the Chuseok holiday, the autumn harvest celebration, which takes place in late September.
Choo said measures to reduce the prices of 20 key items and provide discount coupons for agricultural products are being considered.
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