<div id="readability-page-1"><div><p><span>South Korea's central bank said on Wednesday headline inflation next year could exceed earlier forecasts if the won stays at its current level against the dollar.</span></p><p><span>&#34;If the KRW/USD exchange rate continues to stay at the current high level of around 1,470 won throughout next year, the consumer price growth rate could rise to the early-to-mid 2% range, slightly surpassing our current projections,&#34; the Bank of Korea said in a bi-annual report on inflation.</span></p><p><span>It said a sustained dollar-won rate near the current level of 1,470 per dollar could trigger a spillover effect on consumer prices and raise domestic inflation. </span></p><p><span>On Wednesday, the won weakened 0.5% to 1,480.4 per dollar, near its 16-year low.</span></p></div></div>

<p>South Korea's central bank warns that if the won remains weak against the dollar, inflation could exceed forecasts next year. A sustained exchange rate of around 1,470 won per dollar may increase consumer prices, pushing inflation to the early-to-mid 2% range. The won recently weakened to 1,480.4 per dollar, nearing a 16-year low.</p>

South Korea central bank sees upside inflation risk with a weaker won