Inflation growth may exceed 5% in May: gov't official
The government plans to announce a set of measures to tame inflationary pressure and stabilize people's livelihoods next week amid the prospect that the growth of consumer prices could top 5 percent, a senior official said Thursday. The country faces an urgent need to stabilize prices of food and other items closely linked to people's lives, according to First Vice Finance Minister Bang Ki-sun. "Some experts forecast consumer inflation could exceed 5 percent in May, accelerating from the growth rate in April," Bang said at a government vice-ministerial meeting on the economy.
If inflation growth tops 5 percent in May, it would be the first time since September 2008 that consumer prices climbed to that range. The International Monetary Fund forecast Korea's 2022 inflation would grow 4 percent, doubling from the central bank's 2 percent target. In an effort to help stabilize people's livelihoods, the government is considering extending a cut in consumption tax on passenger cars for another six months.
A 30 percent cut in the consumption tax on the purchase of passenger cars is supposed to expire at the end of June.
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