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What more can South Korea do to tame racing inflation

By Kim YeonheeSEOUL, April 8 (Reuters) South Korea government has taken a series of steps since President Lee Myung canada goose coats bak declared a on inflation early this year to uk canada goose outlet keep higher global commodity prices from feeding into broader, domestic buy canada goose jacket cheap inflation, which has raced to a 29 month high.Policymakers and analysts expect inflation to start easing soon as warmer weather brings an increased supply of vegetables and after the government pressured oil refiners to temporarily cut fuel prices, but Canada Goose sale inflation is expected to remain high for the time being.Much will depend on whether international prices of oil and soft commodities such as grain continue to climb. South Korea is the world canada goose clearance sale fifth largest importer of crude oil.Data on Friday showed South Korea annual producer inflation quickened to a 28 month high in March, led Canada Goose Parka by oil products. The consumer price Canada Goose Online index in March rose 4.7 percent from Canada Goose online a year earlier.The following are possible additional measures that the government could take and their expected effects:MOBILE PHONE FARES A government led task force analysing pricing systems for canada goose store mobile phone fares is due to release its findings early next month. The report is likely to increase pressure on network operators to voluntarily cut fares.The government has long said there was room for mobile operators to offer a wider range of packages for subscribers to cheap Canada Goose choose from, canada goose factory sale including cheaper price schemes for those who use mobile phones for a limited length of time.Telephone and telephone data service costs have a 5.65 percent weighting in South Korea consumer price index canada goose basket.Agricultural, livestock and fisheries products have a combined 8.8 percent weight; oil products 5.4 percent; public utility fares 16.3 percent; and personal service costs 34.4 percent.FOOD PRICES The government may canada goose coats on sale increase the amount canada goose black friday sale of tariff free imports of meat and other canada goose uk outlet foods to stave off supply shortgages uk canada goose that could drive domestic prices higher. It has already cut import tariffs on some food items such as canada goose uk black friday fish.Separately, it may crack down harder on food distribution companies found to be involved in unfair pricing practices.OIL PRODUCT IMPORTS The government may allow higher imports of oil products by easing requirements for importers.It also may ease restrictions on canadian goose jacket firms looking to enter into the oil products distribution business Canada Goose Coats On Sale and encourage discount store chain operators to buy canada goose jacket operate gas stations across the country as a cheap canada goose uk way to boost competition.FUEL TAXES The government may cut import tariffs on crude oil or domestic sales taxes on oil products if inflation stays high and global oil prices rise further, but it will probably save this as Canada Goose Outlet one of its last options.When crude prices surged Canada Goose Jackets in 2007 2009, South Korea cut oil import tariffs to 1 percent from 3 percent.Taxes account for https://www.gestiontb.ca 47 percent and 38 percent of retail gasoline and diesel prices, respectively. A 10 percent fall in oil prices tends to trim annual canada goose clearance consumer inflation by 0.4 percentage points, according to analysts.A 10 percent rise in the won canada goose outlet value could whittle 0.4 percentage points off consumer inflation on average, analysts estimate.The won has risen 5.6 percent since hitting a March low of 1,144.0 per dollar on March 17 and the government has refrained from intervening strongly to halt its gains, which analysts see as reflecting the government increased tolerance toward a rising won, at least for now.But analysts remain sceptical the government of growth oriented President Lee Myung bak would allow won appreciation for a long period of time, mainly due to concerns that it would make the country exports less competitive, unless oil prices extend their recent gains. For a list of measures canada goose uk shop already taken by the government, see [ID:nL3E7F619W] (Editing by Yoo Choonsik Kim Coghill).