Gov't says low inflation comes more from the supply side than from demand; not in a deflation situation
- 5 years ago
First Vice Minister of Economy and Finance Kim Yong-beom says weak inflation data in recent months hasn't led to concerns about deflation just yet.
At an economic policy meeting between the Finance Ministry and the Bank of Korea on Tuesday morning, the vice minister said low consumer prices in the last eight months come more from the supply side rather than from demand, as global oil prices and agricultural goods prices drove down consumer prices.
Bank of Korea Senior Deputy Governor Yoon Myun-shik also said low inflation has been seen widely across major economies since the global financial crisis and that population trends and e-commerce have contributed to lower consumer prices.
He said the BOK will exchange information with the finance ministry regularly to further monitor the changes in consumer prices and the effect on the local economy.
At an economic policy meeting between the Finance Ministry and the Bank of Korea on Tuesday morning, the vice minister said low consumer prices in the last eight months come more from the supply side rather than from demand, as global oil prices and agricultural goods prices drove down consumer prices.
Bank of Korea Senior Deputy Governor Yoon Myun-shik also said low inflation has been seen widely across major economies since the global financial crisis and that population trends and e-commerce have contributed to lower consumer prices.
He said the BOK will exchange information with the finance ministry regularly to further monitor the changes in consumer prices and the effect on the local economy.