The central bank has warned consumer prices could extend their upward march for longer than initially thought, citing persistent global supply bottlenecks and a stepped-up demand for goods as the country begins its transition into "living with COVID-19."

In a report on Wednesday, the Bank of Korea(BOK) said inflationary pressure has rapidly surged in both South Korea and the U.S. this year, especially in the second quarter.

The BOK said costs of volatile items such as energy and food products have led the trend in Korea, with demand-side pressure picking up as the economy recovers. The report named raw materials, processed food products and dining out as areas that could see sustained inflationary pressure.

While the impact of global supply disruptions has been limited in South Korea, should the situation persist, it could contribute to an accelerated inflationary trend, the bank said.