S. Korea's import price growth hits 13-month high in April

SEOUL, May 14 (Yonhap) -- South Korea's import prices grew at the steepest clip
in 13 months in April as higher oil costs overshadowed the impact of the local
currency's ascent to the U.S. dollar, the central bank said Friday.
In local currency terms, import prices rose 5.1 percent in April from a year
earlier, a turnaround from a 4.3 percent fall in March, according to the Bank of
Korea (BOK). April's reading marked the sharpest growth since a 10.6 percent
expansion recorded in March 2009.
Month-on-month, import prices grew by 1.2 percent in April, the same as in March,
the BOK said.
"Crude oil prices sharply rose in April compared with the same period of 2009,
leading import prices to make a turnaround," said Lim Su-young, an official at
the BOK.
The data came two days after the BOK froze its key interest rate at 2 percent for
the 15th straight month.
BOK Gov. Kim Choong-soo said the country's consumer prices are likely to remain
stable for the time being, but added that the economic recovery is expected to
add upward pressure on inflation in the second half. The upward trend of import
prices adds to concerns over inflationary pressure down the road.
Raw material costs climbed 24.7 percent in April from the previous year, up from
an 11.5 percent on-year gain in March.
The cost of Dubai crude, South Korea's benchmark, jumped 67.3 percent in April,
compared with the previous year. South Korea, the world's fifth-largest crude
buyer, relies entirely on imports for its oil needs.
The Korean currency gained an average of 19.8 percent versus the dollar in April
compared with a year earlier.
Meanwhile, export prices in Korean won terms fell 6.7 percent on-year in April,
smaller than a 12.2 percent decline the previous month.
sooyeon@yna.co.kr
(END)

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