SEOUL: South Korea's vice finance minister said on Friday the inflation situation was continuing to deteriorate due to rising farm products prices and other factors, accodring to Reuters.
Yim Jong-yong made the remark during a weekly meeting of senior officials from related government ministries to discuss inflation trends, it said.
"The environment surrounding consumer price trends is continuing to deteriorate," Yim said. "The worst thing in terms of the consumer prices is that service-sector costs rise mainly due to expectations for higher inflation."
The central bank raised interest rates a month earlier than expected by 25 basis points to 2.75 percent early this month, days after President Lee Myung-bak called on his cabinet to stage a "war on inflation".
Analysts expect the Bank of Korea to raise the benchmark 7-day repurchase agreement rate again as early as in March, which would mark its fourth rate increase since the 2007-2008 global financial crisis.
The government also unveiled a set of measures to contain mounting inflation, including a freeze on tuition fees at public colleges and a plan to delay some of the anticipated increases in public utility fares. - Reuters.
Yim Jong-yong made the remark during a weekly meeting of senior officials from related government ministries to discuss inflation trends, it said.
"The environment surrounding consumer price trends is continuing to deteriorate," Yim said. "The worst thing in terms of the consumer prices is that service-sector costs rise mainly due to expectations for higher inflation."
The central bank raised interest rates a month earlier than expected by 25 basis points to 2.75 percent early this month, days after President Lee Myung-bak called on his cabinet to stage a "war on inflation".
Analysts expect the Bank of Korea to raise the benchmark 7-day repurchase agreement rate again as early as in March, which would mark its fourth rate increase since the 2007-2008 global financial crisis.
The government also unveiled a set of measures to contain mounting inflation, including a freeze on tuition fees at public colleges and a plan to delay some of the anticipated increases in public utility fares. - Reuters.
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