Consumer prices soar in January

After the release of statistics showing that consumer prices rose as much as 1.1 percent in January, the government held an emergency meeting of price-related ministers Wednesday and announced a package of measures to arrest inflation.

The Ministry of Finance and Economy (MOFE) and the National Statistical Office said earlier that consumer prices climbed by 1.1 percent from December last year and by 4.2 percent from the same period a year ago.

The increase rate is substantial compared to a 0.2 percent rise in January last year, a 0.4 percent decline in November and a 0.4 percent increase in December, the ministry said.

Prices of daily necessities inched up 0.9 percent compared to December last year and rose 5 percent from the same period last year, it added.

Oh Kap-Won, chief of the people¡¯s life bureau of MOFE, said the unexpected high inflation rate in January was caused by sharp increases in the prices of agricultural, fisheries and livestock products during the Lunar New Year¡¯s Day holidays, heavy snowfall and a rise in medical insurance premiums.

By region, Ulsan topped all other cities in terms of inflation with a rate of 1.6 percent. Taejon saw the smallest price increase of only 0.7 percent.

The producer's price index increased by 0.5 percent from December and by 2.3 percent from the same month last year.