The Bank of Korea (BOK) raised its outlook for this year's consumer price inflation to 5.2 percent from 4.5 percent estimated three months earlier.
It marked the highest in 24 years since the BOK's headline inflation forecast was set at 9.0 percent in 1998.
Consumer prices were projected to rise 3.7 percent in 2023, revised up from 2.9 percent estimated in May.
To rein in the runaway inflation, the BOK lifted its benchmark interest rate by 25 basis points to 2.50 percent at the August rate-setting meeting, delivering four back-to-back rate hikes for the first time.
The outlook for this year's economic growth was revised down to 2.6 percent from the previous estimate of 2.7 percent.
Real gross domestic product (GDP), adjusted for inflation, was predicted to grow 2.1 percent in 2023, revised down from the previous forecast of 2.4 percent.
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