[2026 Parliamentary Audit] Shin Hyunsong: "Core Inflation Must Be Preemptively Controlled... A Key Step Toward Achieving the Inflation Target"

Bank of Korea Governor Shin Hyunsong said on October 12, "Preemptively controlling core inflation is a very important preliminary step toward achieving our inflation target going forward."

Bank of Korea Governor Shin Hyun-song answers lawmakers' questions during a parliamentary audit at the Bank of Korea in Jung District, Seoul, on the 12th. Photo by Joint Press Corps, Yonhap News Agency.

Speaking at a parliamentary audit of the Bank of Korea by the National Assembly's Finance and Economy Planning Committee that morning, Governor Shin said, "Headline CPI (consumer price inflation) is also important, but core inflation is significantly off target."

Asked by Kim Young-hwan of the Democratic Party of Korea about the possibility of demand-side inflationary pressure, Governor Shin said, "From spring through summer, the pass-through of costs resulting from rising oil prices had a considerable impact on inflation. Nominal gross domestic product (GDP) is now growing significantly, and the latest statistics show a 26.4% increase year over year. We expect the resulting improvement in income conditions to ultimately emerge as demand-side inflationary pressure."

On the effects of demand-side and supply-side factors on inflation, Governor Shin added, "Even when supply-side cost pass-through feeds into core inflation, it can also interact with demand-side factors. We will analyze both demand-side and cost-side effects and take them into account."

This content was produced with the assistance of AI translation services.