BoK says cost of living not a priority in their price stability mission

SEOUL ― South Korea should try to address the country's high cost of living through structural reforms instead of relying on the central bank to fight it, a Bank of Korea (BoK) official said, as the bank mainly targets inflation rather than price levels.

"Targeting price level rather than the inflation rate could end up increasing volatilities to inflation and the economy as monetary policies would be responding backwardly to price trends," Senior Deputy Governor Ryoo Sangdai said in a written response to Reuters' queries.