Finance ministry credits food price easing and tariff measures while defending Lee administration’s cash coupon program

South Korea’s finance ministry said Monday that consumer inflation remained stable near the Bank of Korea’s 2% target in September, as food price pressures eased following the Chuseok holiday. The consumer price index rose 2.1% from a year earlier, unchanged from August, while prices for agricultural, livestock and fisheries products increased 1.9%, down sharply from the prior month when a heatwave had driven costs higher. Government data showed the average cost of holiday food baskets fell between 0.3% and 5% from last year, depending on survey source.

The finance ministry attributed the moderation to cost-of-living measures, including temporary tariff-rate quotas on imported food and feed materials. Processed food prices, which had climbed 2.7% since December, slipped 0.1% on the month for the first time this year. The Fair Trade Commission said oligopolistic structures in the food industry had contributed to past price increases through unfair practices. The finance ministry also rejected claims that its $9.2 billion (13 trillion won) cash voucher program had fueled inflation, saying there was “no objective evidence” that the one-off handouts affected consumer prices.

South Korea’s finance ministry said Monday that consumer inflation remained stable near the Bank of Korea’s 2% target in September, as food price pressures eased following the Chuseok holiday. The consumer price index rose 2.1% from a year earlier, unchanged from August, while prices for agricultural, livestock and fisheries products increased 1.9%, down sharply from the prior month when a heatwave had driven costs higher. Government data showed the average cost of holiday food baskets fell between 0.3% and 5% from last year, depending on survey source.

The finance ministry attributed the moderation to cost-of-living measures, including temporary tariff-rate quotas on imported food and feed materials. Processed food prices, which had climbed 2.7% since December, slipped 0.1% on the month for the first time this year. The Fair Trade Commission said oligopolistic structures in the food industry had contributed to past price increases through unfair practices. The finance ministry also rejected claims that its $9.2 billion (13 trillion won) cash voucher program had fueled inflation, saying there was “no objective evidence” that the one-off handouts affected consumer prices.

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