The Korea Development Institute(KDI) has recommended further easing of monetary policy tightening as it forecast that the slowdown in inflation will continue for the time being. 

The state-run think tank made the recommendation in a report released on Monday that analyzed recent price fluctuation factors as growth in consumer prices slid to one-point-three percent last month. 

The institute analyzed four factors that affected price fluctuation since the COVID-19 pandemic, including adjusting the benchmark rate, the government’s financial policy, non-policy demand factors, such as geopolitical shocks, and supply shocks. 

The institute forecast that the slowdown in inflation will continue for a while unless unexpected additional shocks occur. 

The KDI, therefore, said it would be desirable to adjust the degree of monetary policy tightening so that the inflation rate does not stay below the target range of two percent for an extended period of time.