Finance minister warns of July price surge amid monsoon floods

A rare downpour that flooded some regions in Korea during the ongoing monsoon season may drive consumer prices up in July, the finance minister warned Tuesday.

Finance Minister Choi Sang-mok speaks during an economic ministerial meeting held at the government complex in central Seoul on Tuesday. [MINISTRY OF ECONOMY AND FINANCE]

A rare downpour that flooded some regions in Korea during the ongoing monsoon season may drive consumer prices up in July, the finance minister warned Tuesday.

“Due to abnormal weather conditions and a base effect, consumer prices may see a temporary surge in July,” said Finance Minister Choi Sang-mok in his opening remarks during an economic ministerial meeting held on Tuesday at the government complex in central Seoul.

“Consumer prices are expected to continue to stabilize starting in August when the general conditions, including the supply of agricultural products, will begin to improve. The government will remain alert and do its best to ensure price stability,” said Choi.

The government will supply over 300 tons of napa cabbages and white radishes daily in July to rein in soaring fresh agricultural product prices, as flooding caused by the recent heavy rains has hampered production in certain regions. Korea's headline inflation has been slowing through the year. Consumer prices rose 2.4 percent on year in June, the lowest level since July 2023.

During the meeting, the government announced new programs to expand senior living communities and housing and improve government administrative services to ease inconveniences in daily lives, including digitalizing the application process for the college entrance exam.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]