The Bank of Korea raised the base interest rate by 0.25 percentage points to 1.75 percent, the central bank announced Thursday.
Inflation over the 12 months from May is forecast at 3.3 percent, up 0.2 percentage points from a month earlier, according to the Bank of Korea on Tuesday.
Korea, the seventh-largest importer of grain in the world, is feeling the surge in prices. The Russian-Ukraine war and India’s export ban on wheat have contributed to rising prices and the start of food protectionism around the world.
A flat of eggs, which carries 30 eggs, was selling for 8,480 won ($6.7) at a discount mart Tuesday, and reached 9,000 won at a traditional marketplace in Jongno District, central Seoul, in May.
The average price of samgyeopsal was 2,816 won ($2.20) per 100 gram (0.2 pounds) on Tuesday, up 20 percent on month, according to the Korea Institute for Animal Products Quality Evaluation.
The diesel subsidy will be expanded so that users of fuel can receive more support.
From Tuesday, Coffee Bean has raised prices 100 to 300 won (8 to 24 cents) on some of its coffee drinks.
Consumer prices rose 4.8 percent year-on-year in April, according to Statistics Korea. It's the sharpest increase since October 2008, when prices increased at the same pace, and the second consecutive month above 4 percent.
According to the industry, construction companies and concrete suppliers have reached an agreement to raise prices 13 percent starting May 1.
Global rebar prices have been soaring since last year as China, the world's biggest steel exporter, imposed restrictions on steel exports.