Gov't asks millers to cut prices to tame inflation

Bags of flour are displayed at a discount store in Seoul. [YONHAP]

The government asked the milling industry to cut flour prices to tame rising inflation.

The Ministry of Agriculture, Food and Rural Affairs made the request in a meeting with seven flour millers, including CJ CheilJedang and Daehan Flour Mills, as imported prices of wheat have been on the decline following a sharp hike in the wake of Russia's war with Ukraine.

Imported wheat prices fell to $416 per ton this month after peaking at $496 per ton in September last year. But they are still higher than a yearly average of $283 per ton.

The companies said, at the meeting, they will consider adjusting retail prices in July to help stabilize the market, according to the ministry.

However, they also cited difficulties that make price cuts challenging, including a surge in accompanying costs and foreign exchange rates.

The request came as consumer prices for wheat-based products were up substantially in 2022 from a year ago and increased overall food prices.

Last week, Korea's finance minister asked instant noodle producers to cut prices of ramyeon, citing falls in global flour prices.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]