S. Korean PM expects inflation to be stabilized at some 2%

South Korean Prime Minister Han Duck-soo said Sunday that the path to inflation stabilization is certain this year and consumer prices are expected to be stabilized at about 2%.

Han made the remarks at a meeting with senior officials at the ruling People Power Party, including Han Dong-hoon, chairman of the party’s emergency committee, South Korean News Agency (Yonhap) reported.

Han told the meeting that exports will lead to an economic recovery this year and inflation will “regain stability in the 2 percent range.”

Han said the government will also make efforts to revive private consumption this year.

The finance ministry has expected annual inflation in 2024 to come to 2.6%, slowing from last year’s 3.6%.

To meet the inflation target, the government decided to earmark around 11 trillion won (US$8.38 billion) this year for policy responses, such as energy voucher programs and discount coupons for farm produce.

Consumer prices, a key gauge of inflation, rose 3.2% on-year in December, the fifth consecutive month that the prices have stayed above the 3% level. (QNA)