S&P Global Ratings says inflation could come in at 5 percent for this year as a whole for the Asia-Pacific region.
It forecast inflation to come back to a more normal range by next year.
Lee Kyung-eun has the details.
S&P Global Ratings released its inflation outlook for Asia-Pacific region for this year on Monday.
With South Korea at 5 percent, the same as New Zealand and Singapore.
The outlook for India is the region's highest at 6.8 percent,.. while the forecast for Hong Kong is lowest at 2.1 percent.
S&P says higher energy and commodity prices are raising inflation in major economies in the region.
And that's prompting central banks in those countries to normalize monetary policies to bring prices under control.
However, S&P also said the region has only recently faced inflation pressure as consumer prices have not yet risen as high as in European countries.
It added that other than China hit hard by COVID-19 lockdowns, the growth outlook for the Asia-Pacific economy seems rather optimistic.
And although exports may have taken a hit recently the region is currently on course to fully recover from the pandemic.
Based on those projections, S&P sees South Korea's inflation dropping to 2.4 percent in 2023.
Followed by 1.8 percent in 2024 before dropping to 1.6 percent 2025.
It also suggests that Asia's fourth largest economy will expand 2.6 percent on-year in 2022.
That's point-1 percentage point higher than its previous estimate released in April.
Meanwhile, South Korea's Finance Minister Choo Kyung-ho recently projected a rate of 6 percent inflation for the June to August period.
Lee Kyung-eun, Arirang News.