S. Korea`s import price growth hits 7-month low in Nov.

SEOUL, Dec. 15 (Yonhap) -- South Korea's import prices grew at the slowest pace in seven months in November as retreats in oil prices and slumping demand outweighed a weaker local currency, the central bank said Monday.
Import prices in local currency terms climbed 32 percent on-year in November,
compared with a 47.1 percent on-year gain for the previous month, according to
the Bank of Korea (BOK).
The November figure marked the slowest growth since a 31.3 percent gain in April,
the central bank said. The country's import prices climbed 50.6 percent on-year
in July, hitting a 10-year high.
Import prices fell 6.6 percent on-month in November, marking the first decline in
three months and falling by the largest margin since December 1998 when such
prices dropped 7.1 percent, it added.
"Despite a softer won, falling oil prices and weaker demand affected by a global
recession drove down the growth of import prices," said Lee Byung-doo, an
official at the BOK.
Raw material prices rose 15.6 percent on-year in November, sharply slowing from a
47.3 percent gain the previous month, it added.
Oil prices have been on a downward path after peaking at US$147 per barrel in
July. South Korea, the world's fifth-largest crude buyer, relies entirely on
imports for its oil needs.
A weaker won against the dollar is putting upward pressure on inflation as it
makes imports more expensive. South Korea's currency has declined more than 30
percent against the greenback so far this year. In November alone, the won lost
12.1 percent against the dollar.
On Thursday, the BOK cut the key interest rate by a record one percentage point
to an all-time low of 3 percent to prop up the slowing economy. It has trimmed
the policy rate by a combined 2.25 percentage points since early October.
sooyeon@yna.co.kr
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