NEWS BRIEF

[Anchor Lead]

Lawmakers started today the negotiations to approve of the 15 trillion won extra budget plan to fund the fourth round of disaster relief. The ruling Democratic Party claims that the budget should be at least partially be increased if more aid is to be given to small businesses and the agricultural, tourism and arts and performance industries. However, the opposition People Power Party argues that fewer government bonds should be issued by slashing the budget for job creation projects and restructuring the government’s fiscal spending.

The Bank of Korea announced today that February’s producer price index rose 0.9% from the previous month to 105.85, continuing an upward trend for four straight months since November. The prices of agricultural and livestock products rose 3% over the past month, while those prices jumped 7.9% in January. The nation’s central bank explained that prices were driven up by the spread of avian flu and subsequent decreases in the shipment of agricultural and livestock products.