Inflation growth estimated to pick up in March amid high oil prices: official
Gas prices at a filling station in Seoul are seen in this March 26 photo. Yonhap
Korea's consumer prices are estimated to have grown at a faster pace in March after Russia's invasion of Ukraine drove up oil prices, a senior government official said Friday.
Inflationary pressure is likely to remain high for the time being as external economic uncertainty has heightened, according to First Vice Finance Minister Lee Eog-weon.
"Expectations are growing that inflation growth will pick up in March, led by a jump in prices of petroleum products," Lee said at a government meeting on inflation.
Korea's consumer prices grew 3.7 percent year-on-year in February amid soaring energy costs. Inflation rose more than 3 percent for the fifth straight month, well above the central bank's inflation target of 2 percent.
Inflation is projected to have jumped an average of 3.88 percent in March, according to a poll of five securities firms by Yonhap Informax, the financial news arm of Yonhap News Agency.
The government is considering whether to cut fuel taxes by a record 30 percent from the current 20 percent in a bid to tame inflation.
Early this month, the country decided to extend a 20 percent fuel tax cut by three months until the end of July. The tax reduction was set to expire at the end of April.
The finance ministry plans to decide whether to further lower fuel taxes Tuesday after taking into account oil price movements and March inflation data.
Dubai crude, South Korea's benchmark, soared to $107.71 per barrel Thursday, up from $77.12 at the end of last year. It hit a yearly high of $127.86 per barrel March 9. South Korea depends mainly on imports for its energy needs. (Yonhap)