The Bank of Korea(BOK) has sharply marked up its inflation outlook for this year with a record-high projection in the low five-percent range.

The central bank forecast on Thursday that the nation’s annual inflation rate will reach five-point-two percent. The zero-point-seven percentage-point increase from the central bank’s previous forecast issued in May is the highest annual inflation outlook since 1998.

The bank also projected that the nation’s inflation rate will stand at three-point-seven percent next year.

Meanwhile, the BOK marked down its economic growth outlook for this year from two-point-seven percent to two-point-six percent while projecting that the nation’s economy will post growth of two-point-one percent next year.