Pres.-elect Urges Keeping Inflation in Check

President-elect Lee Myung-bak asked the presidential transition committee Sunday to “keep a close watch on export and import trends and the consumer price index, and take action against any negative signs.”

In response to Lee`s orders, Kang Man-soo, chairman of the committee’s economic affairs subcommittee, held an emergency working-level meeting in the afternoon. There, officials agreed that the trade deficit and inflation were due largely to external factors such as high oil prices, and pledged thorough efforts to control the situation.

Kang also asked Finance and Economy Minister Kwon O-kyu to keep tabs on trade balance and inflation and take necessary measures.

“The government will go to all lengths to keep inflation in check by freezing utility rates in the first half of the year and control tuition at private cram schools to reduce private educations costs,” committee spokesman Lee Dong-gwan quoted Minister Kwon as saying.

Separately, the ministry will hold a price control meeting Tuesday for the Lunar New Year’s holidays.

According to the Commerce, Industry and Energy Ministry and the National Statistical Office, the trade deficit reached an eleven-year high of 3.38 billion dollars last month. Consumer inflation grew 3.9 percent in January, the highest in three years and four months.

With the Lunar New Year’s holidays just around the corner, the consumer price index for necessities jumped 5.1 percent due to price hikes for agricultural and livestock products.

koh@donga.com