SEOUL, July 4 Reuters South Korea should try to address the country39;s high cost of living through structural reforms instead of relying on the central bank to fight it, a Bank of Korea 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 Reuters39; queries.

Ryoo, a voting board member, was responding to whether the central bank should do more to address inflation eating into people39;s paychecks.

Soaring food prices around South Korea39;s staples including Apples and green onions have been at the center of public debate since the country39;s parliamentary election in April, where President Yoon Suk Yeol39;s party suffered a stinging defeat amid voter anger over rising food prices.

Ryoo39;s comments come as the mood turns increasingly dovish in Asia39;s fourthlargest economy ahead of a monetary policy meeting next Thursday. It will be the first time its policy board meets after President Yoon said this week a cut may be necessary, in strongest remarks yet from the government.

Ryoo declined to comment on interest rates ahead of next week39;s policy decision, but said the won39;s recent movements amid rate cut expectations seem to be also affected by South Korea39;s economic conditions and…