Korean Finance Ministry to battle inflation before Chuseok holidays begin

Korea plans to roll out additional measures to tame inflation ahead of the Chuseok harvest holidays in September, government officials said Thursday.

In particular, the Finance Ministry is considering various ways to increase the supply of key foodstuffs and reduce living costs in the run-up to the Chuseok holiday that goes from Sept. 9 to 12.

The government is also mulling over offering special financial support to small firms and merchants in a bid to help them meet cash demand.

The move comes as the country's consumer prices soared 6.3 percent on-year in July, the fastest rise in almost 24 years and up from the 6 percent spike in June.

Demand for vegetables, eggs and other foodstuffs usually rises in Korea ahead of the Lunar New Year and Chuseok holidays as people prepare holiday meals for family gatherings.

Prices of farm produce shot up last month largely due to the frequent rain and heat waves. Prices of vegetables jumped 25.9 percent on-year in July.

Finance Minister Choo Kyung-ho earlier said inflation may peak no later than October so long as there is no spike in global oil and grain prices.

Yonhap