Korea's import prices rise for third month amid global pressures

Containers stacked up at a dock in a port in Busan on March 8. [NEWS1]

Korea's import prices climbed for a third consecutive month in March, driven by the deprecating won and rising oil prices amid persisting geopolitical tensions in the Middle East.

The import price index rose 0.4 percent last month from a month earlier following a 1.0 percent on-month gain the previous month and a 2.5 percent advance in January, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, prices fell 0.7 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 $84.18 per barrel in March, up from $80.88 the previous month, according to the central bank.

The won averaged 1,330.70 against the greenback last month, slightly up from 1,331.74 the previous month.

Import prices of raw materials rose 0.9 percent, while those for intermediate goods gained 0.4 percent.

The export price index also advanced 0.4 percent in March after a 1.6 percent on-month gain the previous month, according to the central bank's data.

Korea's inflation stayed over 3 percent for the second consecutive month in March on record prices of fruit and rising global oil prices.

Consumer prices, a key gauge of inflation, rose 3.1 percent on year last month, following a 3.2 percent increase the previous month, according to the data from Statistics Korea.

Earlier this month, the BOK kept its key interest rate unchanged at 3.5 percent for the 10th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]