South Korea's import costs grew in February as the local currency's fall and higher oil prices drove up the price of buying goods overseas, central bank data showed Tuesday. The import price index rose 2.1 percent in February from a month earlier, according to the preliminary data from the Bank of Korea (BOK). The rise is blamed on the won's fall against the U.S. dollar that increased the cost of overseas purchases. Higher oil prices were another contributor to the growing costs. Prices of Dubai crude, South Korea's benchmark, were at US$82.11 per barrel on average last month, up 2.1 percent from the previous month. Import prices are being closely watched, as they could have an impact on the country's overall rate of inflation. Consumer prices, a key gauge of inflation, rose 4.8 percent last month from a year earlier, compared with 5.2 percent growth posted in January. Last month, the BOK left its policy interest rate unchanged, as inflation pressure appears to be easing and worries over an economic slowdown are mounting.
Source: Yonhap News Agency