Heavy rains in South Korea last month have pushed up the cost of domestically grown fruit and vegetables, adding to the government’s inflation woes.
According to a report by South Korean news agency Yonhap, consumer price growth in the county is expected to top last month’s 4.7 per cent gain, which would make it the eighth straight month consumer price growth had occurred above the government’s annual inflation target of four per cent.
Part of the blame for the high rate of inflation has been levelled at the rising cost of agricultural products as a result of heavy rains last month.
“The prices of vegetables are rising significantly due to heavy rains in July, with costs of pork, processed goods and many other items increasing as well,” said director general of the finance ministry’s economic policy bureau Yoon Jong-won. “The August inflation is likely to top July’s figure,” he added.
The country’s government recently raised its annual inflation target from 3 to 4 per cent.
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