Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of the Ministry of Economy and Finance, said on the 2nd, "With the resolve that price management is both the beginning and the end of stabilizing people's livelihoods, we will devote our full efforts to managing food prices with a heightened sense of urgency."
Deputy Prime Minister Koo presided over a meeting of economic ministers and a meeting of price-related ministers that day. The consumer price index for November, released by the National Data Agency that day, rose 2.4% from a year earlier. It marked 2.4% for the second consecutive month after October.
Consumer prices climbed into the 3% range early last year before stabilizing into the 1% range by year-end. Then this year, except for two months—May and August—they have consistently stayed in the 2% range.
Last month, prices of agricultural, livestock, and fisheries products, which have a large impact on people's daily lives, rose 5.6% from a year earlier. It was the biggest increase since June last year (6.5%). Due to the rise in agricultural, livestock, and fisheries prices, the living expense price index (2.9%) also saw the biggest increase since July last year (3.0%). Among other product groups, petroleum products (5.9%) also posted the largest rise in nine months.
Deputy Prime Minister Koo said, "As processed food prices were raised intensively in the first half, the consumer price inflation rate remains elevated." He added, "Frequent rainfall and other adverse weather, along with a stronger exchange rate, widened the increase in prices of agricultural, livestock, and fisheries products and petroleum products."
The government decided to exempt tariffs on 10 food raw materials including sugar and coffee, and nine feed raw materials including hulled barley, through the end of next year. It will also exempt tariffs on 12 items including egg-processed products through June next year.
Also starting on the 15th, the top 10 chicken brands will be required to indicate the weight of chicken before frying. The goal is to prevent so-called shrinkflation. Shrinkflation refers to food companies reducing package size without notifying consumers, effectively reaping a price increase. For processed foods, if corporations cut weight by more than 5% without informing consumers, the government will impose penalties up to ordering a suspension of item manufacturing.
Meanwhile, within this year the government will designate, for the first time, four national marine ecological parks at Garorim Bay in South Chungcheong, Sinan and Muan in South Jeolla, Yeojaman between Suncheon and Boseong in South Jeolla, and Homibando in North Gyeongsang. The aim is to conserve marine ecosystems and invigorate local economies.