The Organization for Economic Cooperation and Development(OECD) has sharply raised its inflation outlook for South Korea for this year to nearly five percent, while slashing its growth outlook below three percent.

According to the Ministry of Economy and Finance on Wednesday, the OECD marked down its 2022 economic forecast for the country by zero-point-three percentage points from its earlier forecast to two-point-seven percent.

The organization cut the growth outlook for next year as well to two-point-five percent from its earlier forecast of two-point-seven percent.

The OECD raised its inflation outlook for this year to four-point-eight percent, two-point-seven percentage points higher than its earlier projection of two-point-one percent.

The latest outlook is higher than the projections by the Bank of Korea and the International Monetary Fund.

The revised estimate would mark the steepest rise since 1998, when it posted seven-point-five percent due to the foreign currency crisis.

The OECD also raised its inflation outlook for next year to three-point-eight percent from its earlier projection of one-point-five percent.