Consumer price to rise over 4% in first half

Consumer price increases are forecast to exceed 4% in the first half of 2001. In a report on price trends in 2000 and forecasts for 2001, the Ministry of Finance and Economy (MOFE) said Sunday that consumer prices in 2001 were likely to see an annual increase rate of 1.6 percentage point after seeing a 3.0% rise in the second half of last year.

Oh Kap-Won, director general at the MOFE said the increase rate would reach the 4% range in the first half, and hover at around 3% in the second half of 2001. The MOFE and Bank of Korea had forecast a 2.3% rise in consumer prices in 2000, and a 2.0% rise in the producer prices. The major factor for the price rises was the hike in the price of crude oil.