S. Korea's import price growth hits 17-month low in March

SEOUL, April 15 (Yonhap) -- South Korea's import prices grew at the slowest clip
in 17 months in March due to pullbacks in oil prices and slumping demand, the
central bank said Wednesday.

Import prices in local currency terms climbed 10.6 percent in March from a year
earlier, moderating from an 18 percent on-year gain the previous month, according
to the Bank of Korea (BOK).
The March figure marked the slowest on-year growth since a 7.5 percent advance in
October 2007.
A softer won caused import prices in March to rise 1.3 percent on-month,
continuing the upswing for the second consecutive month. The comparable figure
for February was a 3.9 percent gain, it added.
Raw material prices fell 10.7 percent on-year last month after dipping 5.5
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 also putting upward pressure on inflation as
it makes imports more expensive. In March, the Korean currency dipped an average
of 0.91 percent against the dollar.
Last week, the BOK froze its key interest rate at a record low of 2 percent for
the second straight month, saying that a sharp fall in economic activity has
moderated. It had made six consecutive rate cuts totaling 3.25 percentage points
since October.
sooyeon@yna.co.kr