Structural changes needed for stable prices: BOK report

SEOUL, Structural changes in the country's farm goods supply chains and sales networks, along with sustainable supply of public services, are needed for long-haul stable prices in Asia's fourth-largest economy, a central bank report showed on Tuesday. According to the report from the Bank of Korea (BOK), the prices of food and garments are relatively high compared to those in other advanced countries, while public service fees are low. "High inflation can be tackled with monetary policy, but price polarization caused by structural problems cannot be solved just with monetary policy," the central bank said. Prices of so-called daily necessities, such as food and clothes, have risen sharply, pushing up the cost of living among vulnerable people, the report said. In the future, an aging trend will tighten budget spending, while climate change will lead to a rise in the cost of living. "In this regard, in order to stabilize the prices of daily necessities, the country needs to diversify supply channels, impr ove sales networks, and secure stable supply of public services," the BOK said. The report also said there is the need to limit a raise in public service fees in order to smooth out the impact from the Russia-Ukraine war and others, but a gradual increase in public service fees should be also reviewed. Source: Yonhap News Agency