The Bank of Korea(BOK) said inflation will likely hover above two percent for quite some time.

According to its report released Thursday, the central bank projected consumer price inflation(CPI) to exceed its two percent target for longer than expected amid economic recovery and increasing price pressure.

It projected the core CPI, which excludes volatile food and fuel, to jump to nearly two percent next year, as price pressure grows on durable goods amid persisting global supply chain woes.

The BOK explained that upside risks to inflation are more dominant than downside risks, citing continued price hikes in raw materials, global supply bottlenecks, further recovery in consumption and rising inflation expectations.