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Gov’t says low inflation comes more from the supply side than from demand…

the finance ministry and the Bank of
Korea held an economic policy meeting this morning to discuss low inflation
now it’s easily held behind closed doors but for the first time under the moon
administration it was open to the press or Hakeem Hassan has more first vice
minister of economy and finance Kim Yong bum says weak inflation data in recent
months hasn’t led to concerns about deflation just yet at an economic policy
meeting between the Ministry of Economy and finance and the Bank of Korea on
Tuesday morning the Vice Minister said low consumer prices in the last eight
months come more from the supply side rather than from demand as global oil
prices and agricultural goods prices drove down consumer prices by 0.7 four
percentage points Korea’s benchmark Dubai crude hit 73 US dollars a barrel
in August 2018 but fell to 59 dollars a barrel last month he added that
excluding the on-year drop in global oil prices consumer price increases for
August would have been at around 1.5 percent the finance ministry also said
the week inflation was partly due to an expansion of health care and welfare
policies like free school meals and expected consumer prices to go up
starting the end of this year Bank of Korea senior deputy governor union shik
said low inflation and slower growth have been seen widely across major
economies since the global financial crisis due to the rise in e-commerce and
globalization and that Korea is not an exception he added that inflation
remained below 1% for 10 consecutive months in 2015 in korea mainly due to
falling global oil prices and that it wasn’t a deflation situation but he
added the Bank of Korea will closely monitor the mid to long-term consumer
price trend and vowed to work closely with the finance ministry holding
economic policy meetings every month to exchange data and analyze the effect of
low inflation on the local economy Kim Ezell Arirang news

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