Uncertainties globally could continue to put upward pressure on prices in Korea, according to the Bank of Korea's research bureau.
Inflation expectations hit a decade-plus high in June.
A new survey by the Bank of Korea found that four out of every 10 companies said this year raw material prices have risen by more than 20 percent compared to last year.
The won declined to a 13-year low on Thursday after the U.S. Federal Reserve chairman acknowledged the chance of a recession.
Bank of Korea warned that rising rates may lead to an increase in personal and corporate insolvencies
Korea's central banker is taking note of the deteriorating world economy.
The Bank of Korea and the Finance Ministry agree that inflation is the top priority.
The Bank of Korea announced it would prioritize inflation in its monetary policy operation, indicating it may raise its interest rate by 50 basis points depending on the economic situation over the next month.
With the Kospi down for a sixth day straight, the finance minister said that the country faces a "complex crisis" and called on the ministry to keep an eye on government finances.