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Import prices jump again on rising oil prices, weak won

Published: 15 Mar. 2024, 10:23

SEO JI-EUN
[email protected]

A gas station in downtown Seoul [YONHAP]

Korea's import prices rose for a second month in February due to higher oil prices and a weaker won against the dollar, according to Bank of Korea data Friday.

The import price index rose 1.2 percent last month from a month earlier following a 2.5 percent on-month gain the previous month, the data showed.

From a year earlier, prices fell 0.2 percent.

Import prices are a major factor that determines the path of the country's overall rate of inflation.

The Dubai crude price, Korea's benchmark, stood at $80.88 per barrel in February, up from $78.85 the previous month, according to the central bank.

The Korean won averaged 1,331.74 against the greenback last month, down from 1,323.57 the previous month.

Import prices of raw materials rose 2.4 percent, while those for intermediate goods gained 0.8 percent.

The export price index also advanced 1.4 percent in February after a 3.1 percent on-month gain the previous month.

In February, Korea's inflation ticked up to over 3 percent in a month due to the high prices of fresh food items and energy.

Consumer prices, a key gauge of inflation, rose 3.1 percent on-year last month, compared to a 2.8 percent increase a month earlier, marking the first time in four months that the price growth accelerated in an on-month term.

Earlier this month, the BOK kept its key interest rate unchanged at 3.5 percent for the ninth straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

BY SEO JI-EUN, YONHAP [[email protected]]