ID :
50753
Mon, 03/16/2009 - 14:14
Auther :
Shortlink :
https://www.oananews.org//node/50753
The shortlink copeid
S. Korea's import price growth picks up in Feb.
SEOUL, March 16 (Yonhap) -- The growth of South Korea's import prices accelerated
in February as the effect of a weaker won overshadowed retreats in oil prices,
the central bank said Monday.
Import prices in local currency terms climbed 18 percent in February from a year
earlier, picking up from a 16.7 percent on-year gain the previous month,
according to the Bank of Korea (BOK).
In January, prices grew at the slowest pace in 13 months due to slumping demand
and falls in raw material prices. The country's import prices climbed 50.5
percent on-year in July of last year, hitting a 10-year high.
Compared with the previous month, February's import prices rose 3.9 percent due
to a softer won, marking the first monthly gain in four months. The comparable
figure for January was a 1.8 percent fall.
"In February, the on-year growth of import prices picked up as the local currency
lost ground to the dollar," said an official at the BOK. "Given the won's sharp
loss of value in early March, there is a high chance that import prices will rise
this month if the won continues its slide."
Raw material prices fell 5.5 percent on-year in February, after dipping 3.5
percent the previous month. Oil prices have been sliding since they peaked 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 declined 25.7 percent to the
greenback last year and is continuing its slide this year. In February alone, the
won lost 10.1 percent against the dollar.
Last week, the BOK froze its key interest rate at a record low of 2 percent after
six consecutive rate cuts in a bid to gauge the effects of those reductions on
the economy and leave room to brace for a deeper economic downturn. Between
October and February, the bank trimmed the rate by a total of 3.25 percentage
points.
sooyeon@yna.co.kr
(END)
in February as the effect of a weaker won overshadowed retreats in oil prices,
the central bank said Monday.
Import prices in local currency terms climbed 18 percent in February from a year
earlier, picking up from a 16.7 percent on-year gain the previous month,
according to the Bank of Korea (BOK).
In January, prices grew at the slowest pace in 13 months due to slumping demand
and falls in raw material prices. The country's import prices climbed 50.5
percent on-year in July of last year, hitting a 10-year high.
Compared with the previous month, February's import prices rose 3.9 percent due
to a softer won, marking the first monthly gain in four months. The comparable
figure for January was a 1.8 percent fall.
"In February, the on-year growth of import prices picked up as the local currency
lost ground to the dollar," said an official at the BOK. "Given the won's sharp
loss of value in early March, there is a high chance that import prices will rise
this month if the won continues its slide."
Raw material prices fell 5.5 percent on-year in February, after dipping 3.5
percent the previous month. Oil prices have been sliding since they peaked 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 declined 25.7 percent to the
greenback last year and is continuing its slide this year. In February alone, the
won lost 10.1 percent against the dollar.
Last week, the BOK froze its key interest rate at a record low of 2 percent after
six consecutive rate cuts in a bid to gauge the effects of those reductions on
the economy and leave room to brace for a deeper economic downturn. Between
October and February, the bank trimmed the rate by a total of 3.25 percentage
points.
sooyeon@yna.co.kr
(END)
