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Excessive inflation is putting a burden on the economy, and it is the same in Korea.
Deputy Prime Minister Choo Kyung-ho gave a forecast of what will happen to Korea's inflation in the future, but he predicted that the inflation rate from the current 6% will not reach 7%, and that the high inflation situation will continue until October.
This is reporter Im Tae-woo.
<Reporter>
Deputy Prime Minister Choo Kyung-ho said that after Chuseok and around October, the high inflation of 6% will continue.
Deputy Prime Minister Choo, who attended the meeting of finance ministers and central bank governors from 20 major countries, met with reporters and made this outlook.
Deputy Prime Minister Chu predicted that inflation will remain unstable until September and October, but that the 7% or 8% inflation will not be fixed for a long period of time.
However, if the supply and demand of vegetables is not smooth due to special weather conditions, it is possible to temporarily increase the inflation rate of 7%.
As for annual growth and inflation projections, several indicators are getting a bit worse, he said, so there is room for correction.
The current growth rate of Korea this year was predicted by the International Monetary Fund (IMF) at 2.5% in April and by the Korean government at 2.6% last month.
Bank of Korea Governor Chang-yong Lee has already said that inflation will peak in the beginning of the fourth quarter, so the high inflation situation is expected to continue until at least early fall.
[Lee Chang-yong/Governor of the Bank of Korea (last 13th): When we make basic economic policies, the expectation we have when we make basic economic policies is not the end of the third quarter or the beginning of the fourth quarter...
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In addition, how long the exchange rate will maintain its upward trend and the direction in which international oil prices will move after they have stabilized remain big variables in this year's inflation forecast.