SK to lower tariffs on seven food imports in order to curb inflation

The finance ministry said yesterday the government will lower tariffs levied on seven farm products and other food imports, including cabbages and grapes, starting May to curb still-high inflation.

The planned move through the tariff-rate quota is part of the country's flexible tariff system, where the government temporarily adjusts basic tariff rates on imported goods to stabilise prices and protect domestic producers, among other goals.

"Prices of seven products of cabbage, Chinese cabbage, carrot, grape, dried laver, seasoned laver and cocoa beans remain unstable, and the government will remove tariffs within next month," First Vice Finance Minister Kim Byoung-hwan said during a meeting of economic vice ministers in Seoul.

"Price stabilisation is more important than any other things for the recovery of domestic demand and for supporting the livelihood of the people," he added.

Consumer prices, a key gauge of inflation, increased 3.1 per cent on-year last month, rising over 3 per cent for the second consecutive month on high prices of fruits, fresh food items and energy.

Inflation has been trending down steadily before reaching its target rate of 2 per cent by the end of this year, though officials have said the pace has been slower than earlier expected.

Trade Minister Cheong Inkyo said he expects exports to rise for the seventh consecutive month in April, helped by a recovery of chip shipments.

Cheong said that the government will make efforts to expand the trade portfolio to maintain the growth momentum, seeking economic partnership agreements with 10 developing nations, including Mongolia, Georgia and Kenya.

An emergency response team composed of officials from both the government and the private sector will also continue to closely monitor the ongoing conflict between Iran and Israel, implementing necessary measures depending on scenarios, Cheong said.