S. Korea's import prices of raw materials up for 6th month

SEOUL, Jan. 12 (Yonhap) -- South Korea's import prices of key raw materials rose
for a sixth straight month in December, led by a surge in the costs of imported
non-ferrous metals and agricultural products, a trade association said Wednesday.
The Korea Importers Association (KOIMA) said its price index for imported
commodities stood at 365.27 last month, up 18.96 points from a month earlier.
Using 1995 as the base year, the benchmark index covers 30 key imported raw
materials, including crude oil and soybeans.
The KOIMA index, which surged to 453.55 in June of 2009 due to runaway crude
prices, had been on a decline, plunging to 198.64 in March last year, as a
protracted global slowdown led to a drop in demand for commodities.
The December increase is attributed mainly to rising prices of raw materials for
non-ferrous metals and farm goods, the association said.
The data comes amid worries that the country's solid economic growth could lead
to a buildup in inflationary pressure.
To control possible inflationary pressure, the Bank of Korea raised its key
interest rate in November last year to 2.5 percent. It hiked the rate from a
record low of 2 percent in July, the first rate increase since the onset of the
2008 global financial crisis.
The central bank is expected to boost the rate further down the road to rein in
inflationary buildup, although it froze the key interest rate for December in the
face of the flagging global economy.
sam@yna.co.kr
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