South Korean president calls for war on inflation

South Korean President Lee Myung-bak urged his cabinet on Tuesday to take a "war on prices" attitude in containing inflation as central bank members expressed their concerns that consumer prices would keep heading higher. Lee told the cabinet to make it a priority in economic policy to contain consumer inflation at around 3 percent this year, a tough task given the sustained economic recovery, heavy fund inflows from abroad and rising prices of key raw materials such as oil.
"I want (the cabinet members) to make efforts to suppress consumer price growth, taking a 'war on prices' attitude," a statement from the Blue House quoted Lee as saying during this year's first cabinet meeting. The central bank has forecast inflation this year would pick up to 3.5 percent from 2.9 percent last year, even as it sees economic growth slowing to 4.5 percent from 6.1 percent. The government aims for 5 percent economic growth. In response to Lee's instruction, the finance ministry - the country's top economic and fiscal policy authority - plans to announce anti-inflation measures on January 13, a ministry official said, without elaborating.