Seoul Prime Minister Forecasts 2 Percent Inflation Stabilization in 2024

SEOUL — Prime Minister Han Duck-soo expressed confidence on Sunday that inflation in South Korea is on track for stabilization, projecting a target of around 2 percent for the year.

According to Yonhap News Agency, who spoke at a meeting with senior officials of the ruling People Power Party, including Han Dong-hoon, chairman of the party’s emergency committee, the government anticipates a significant economic recovery driven by exports, along with inflation regaining stability within the 2 percent range.

The Prime Minister also emphasized the government’s commitment to rejuvenating private consumption throughout the year. This statement comes amid various economic challenges the country has been facing.

The finance ministry has projected the annual inflation rate for 2024 to be 2.6 percent, a decrease from last year’s rate of 3.6 percent. In a strategic response to meet these inflation targets, the government has allocated approximately 11 trillion won (US$8.38 billion) for policy measures. These measures include initiatives like energy voucher programs and discount coupons for farm produce, aimed at easing the financial burden on consumers.

The announcement comes in the context of consumer prices, a critical indicator of inflation, which saw a 3.2 percent increase year-on-year in December. This marked the fifth consecutive month of consumer prices remaining above the 3 percent level, highlighting the ongoing inflationary pressures in the economy.