PM calls for measures to stabilize inflation

Prime Minister Han Duck-soo speaks at a Cabinet meeting at the Government Complex in Sejong, June 28. Yonhap

Prime Minister Han Duck-soo called for ministers to come up with measures to help stabilize inflation Tuesday, noting that soaring prices are hurting consumers' pocketbooks.

"The government must make the utmost effort to manage prices in order to stabilize the livelihood of the people and take every measure to reduce their cost of living," Han told a Cabinet meeting.

Korea is facing mounting inflationary pressure, as the protracted Russian invasion of Ukraine has jacked up crude oil and commodity prices.

Han said inflation is expected to stay high for the time being due to external factors, including the Russia-Ukraine war and global supply chain constraints.

The country's consumer prices jumped 5.4 percent year-on-year in May, the fastest rise in almost 14 years, with the Bank of Korea (BOK) warning of faster inflation growth.

Market watchers say the BOK could take more aggressive monetary tightening steps to fight inflation, particularly as the U.S. Federal Reserve hiked its key rate by 0.75 percentage points this month, the sharpest hike since 1994. (Yonhap)