South Korea import prices rise at sharpest pace in over 3 years

SEOUL, April 15 : South Korea's import prices rose in March at the sharpest pace in more than three years on a surge in oil prices sparked by the Middle East conflict, central bank data showed on Wednesday.

The Bank of Korea's import price index rose 18.4 per cent in March from a year earlier in won terms, after rising 1.6 per cent in February. It was the biggest year-on-year increase since October 2022.

On a monthly basis, import prices, which affect domestic consumer prices with a lag of one to three months, rose 16.1 per cent, the biggest since January 1998, as prices of crude oil surged by a record 88.5 per cent.

"It is difficult to predict April data for now, because it will be difficult for supply disruptions of raw materials to be fully resolved for the time being," a Bank of Korea official told a briefing held prior to the data release.

In March, consumer prices rose 2.2 per cent from a year earlier, picking up less than expected as the government capped fuel prices, but policymakers and economists warned that risks remained tilted to the upside.