Import prices jump 35.5% in March

Home > Business > Economy

print dictionary print

Import prices jump 35.5% in March

An imported food product storage facility in Eumseong, North Chungcheong on April 11. Imported good prices has seen the sharpest year-on-year growth in 15 years in March. [YONHAP]

An imported food product storage facility in Eumseong, North Chungcheong on April 11. Imported good prices has seen the sharpest year-on-year growth in 15 years in March. [YONHAP]

Import prices rose 35.5 percent in March due to the war in Ukraine and higher energy prices, the sharpest increase in nearly 15 years.  
 
The last time import prices rose at that level was in October 2008, when they surged more than 38 percent during the global economic meltdown that started with the Lehman Brothers bankruptcy.  
 
With the conflict in Ukraine showing no sign of subsiding and the Korean won remaining above 1,200 won to the greenback, the rise could continue.  
 
According to Bank of Korea on Thursday, higher energy prices and the strengthening of the U.S. dollar have driven up the prices of imported goods.  
Dubai crude last month was traded at an average of $110.93 per barrel, 72.1 percent higher compared to the same month a year ago and 20.1 percent higher compared to February.  
 
Import prices have been growing on-year for the last 13 straight months, and at a double-digit rate for 12 consecutive months.  
 
Compared to the previous month, import prices were up 7.3 percent in March.  
 
Among imported goods, raw materials rose most sharply, 73.9 percent year-on-year.  
 
Mining products including crude oil surged 81 percent compared to a year ago, while agriculture, livestock and fishery goods rose 27.6 percent.  
 
Imported crude prices rose 85.8 percent.  
 
Intermediate goods rose 27.5 percent. Coal and petroleum prices including naphtha were up 74.5 percent.  
 
Consumer goods rose 7.3 percent.  
 
The prices of Korea's exported goods also rose. When compared to a year ago, prices of Korean goods exported overseas rose 22.6 percent year-on-year in March. When compared to the month before, the growth rate was 5.7 percent higher. 
 
Inflation is a worry around the world.
 
Korea’s consumer prices last month rose 4.1 percent compared to a year ago, the sharpest increase in a decade.  
 
U.S. consumer prices in March increased 8.5 percent year-on-year, the fastest increase in 40 years.
 
Citing rising inflation, the World Trade Organization lowered its global economic growth forecast for this year from 4.1 percent to 2.8 percent as global trade is expected to slow from 4.7 percent growth to 3 percent.  
 
To tackle inflation, central banks have been taking aggressive steps including Bank of Korea, which raised the key interest rate Thursday for the second time this year.  
 
Finance Minister Hong Nam-ki said Tuesday Korea is likely to see slower growth this year.  
 
Earlier this year, the government projected the economy to expand 3.1 percent and consumer price to increase 2.2 percent, but the growth forecast is likely to be lowered and the inflation forecast raised.  
 

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)