The Korea Development Institute has urged South Korea's central bank to focus more on its two percent inflation target.<br />In its report, the state-run think tank said falling consumer price inflation this year is not just caused by supply side factors, but also demand-side pressure.<br />It added that the Bank of Korea needs to use monetary policy and focus on price stabilization rather than financial stability to lower the possibility of deflation.<br />Consumer prices fell on-year for the first time in September, and inflation expectations also dropped to a record low of one-point-seven percent this month.<br />
