The Bank of Korea(BOK) forecast that inflation would remain in the lower two-percent range in 2026.

In a report released Wednesday, the central bank said it expected annual inflation of around 2.1 percent but noted uncertainty regarding the weather and foreign exchange rates.

The report said a sharp increase in agricultural, livestock and fishery products has become a primary cause of price instability.

Inflation reached two-point-four percent in October and November after agricultural, livestock and fishery product prices slowed their descent due to a prolonged heat wave, heavy rain and high water temperatures.

The exchange rate, which has climbed into the mid-to-late 1,400 won range, also threatens to push up import prices for crude oil and raw materials, as well as overall domestic prices.

The BOK warned that if the won-dollar rate remains in the one-thousand-470 range next year, inflation could exceed the forecast.