Posts tagged ‘food sector’
On 5 January 2011, the Ministry of Strategy and Finance (MOSF) stated that food will be included in the price control measures to be announced on 13 January 2011.
In 2010, Korea’s average inflation rate remained within target levels at 2.9 percent, however, food prices reached 16-year highs in the second half of the year. The price rises in basic commodities in December 2010 and the ongoing impact of Foot and Mouth Disease (FMD), are now beginning to flow through to consumers, with substantial price rises expected as Lunar New Year approaches.
The rapid rise in food prices is not unique to Korea. The United Nations Food and Agriculture Organization (FAO) has stated that the global food price index for December 2010 was at its highest level since records began in 1990. Concerns regarding rapid food price rises have already prompted government action in China, India, Indonesia, Singapore and Taiwan. Measures have included direct control over prices, the release of government stockpiles and the encouragement of private production.
The Lee Myung-Bak administration has strongly promoted its efforts to fight inflation and the price control measures to be announced on 13 January 2011 have attracted substantial media interest. This presents a risk that the administration will be perceived as ineffective as prices continue to rise due to external conditions.
