Korea’s top economic policymaker voiced discontent Friday with the decision by the Seoul government to raise public transportation fares, saying it could drive up overall inflationary pressure in Asia’s fourth-largest economy.

The Seoul government said Thursday it will raise public transportation fares by 150 won ($0.13) later this month to make up for rising deficits from energy costs and transfer discounts.

“We are deeply disappointed with the decision, which came despite our repeated expression of different opinions,” Finance Minister Bahk Jae-wan told a price stabilization meeting in central Seoul. 

The central government asked Seoul to delay raising bus and subway fares on worries that a hike could exert upward pressure on inflation in the country.

Seoul is home to more than 10 million people and a rise in public charges in the capital city could hurt many ordinary people whose livelihood has already been under pressure from high inflation.

South Korea has been struggling to keep inflation under control as rising crude oil, raw material and food prices remain destabilizing factors.

Last year, the nation’s consumer prices jumped 4 percent from a year earlier, hitting the upper ceiling of the central bank’s 2-4 percent target band.

Bahk said he is concerned the decision by the Seoul government could stoke worries about price instability and have a ripple effect throughout the country by encouraging other municipalities to follow suit. 

(Yonhap News)