South Korea PM seeks consumer price stability
SEOUL, March 18 (Reuters) - South Korea's prime minister called on Tuesday for measures to cushion domestic prices from the impact of volatile world markets, adding that a fall in the value of the won was a concern.
The won KRW= dropped to a 27-month low against the dollar on Monday, exacerbating the cost to the country of such high-flying commodity imports as oil and food.
"The financial markets are moving at a troubling rate, with the rise in the exchange rate, stock prices falling and interest rates climbing," the prime minister, Han Seung-soo, was quoted as saying at a cabinet meeting by a government spokesman.
"We need to look at measures to minimise the impact," he said, adding, "We need particular attention to stabilising the prices of necessary goods."
Han's comments echoed remarks by President Lee Myung-bak, who said on Monday the government should look at a basket of about 50 goods and manage their prices so that they can be stabilised.
In February, the annual consumer inflation rate stood above the central bank's target of 2.5 percent to 3.5 percent for the third month in a row, raising fears about its impact on consumer spending even as the global demand is slowing. (Reporting by Jack Kim and Yoo Choonsik; Editing by Neil Fullick)
