South Korean Finance Minister: Will lower the ceiling on fuel prices

South Korea's Finance Minister said on Friday that in order to ease inflationary pressures, South Korea will lower the cap on fuel prices. "Due to the uncertainty in the Middle East situation, we have maintained the sixth fuel price cap this week, but the seventh cap will be lower than the current level and will continue until consumer prices stabilize," said South Korea's Finance Minister Hong Nam-ki. South Korea implemented a nationwide fuel price cap for the first time in decades in March, and the authorities now adjust it monthly. South Korea's consumer inflation rate rose to 3.1% in May, the highest level in over two years and higher than expected. This increase was primarily driven by high oil prices caused by conflicts in the Middle East, and it also strengthens the argument for possible monetary tightening next month. Hong Nam-ki stated that the government will take policy measures to strive to keep consumer inflation below 3% in the second half of this year.