SEOUL (Reuters – South Korea’s central bank has warned that inflation can be impacted by a weaker won. The bank also reiterated its commitment to fighting inflation.

According to a schedule policy report, Bank of Korea reported that the Bank of Korea attributed 0.34 of a percent point of consumer price index’s 3.8% jump over last year.

The won fell 7.5% against the dollar in January and March compared to one year ago, which was more than the 5.6% drop over the previous three months, according to central bank data.

In an effort to control inflation, The Bank of Korea increased its policy interest rates by 125 basis point from 0.5% on August.