South Korean import prices in July rose by their fastest pace in over a decade on higher global oil and raw material prices, central bank data showed on Thursday.

South Korean import prices in won terms jumped 50.6 percent in July from a year earlier, the strongest pace since a 53.9 percent annual gain posted in February, 1998, the Bank of Korea said in a statement.

June import prices posted an annual growth of 49.0 percent.

“Annual import price growth is expected to slow down from August on the recent falls in oil and raw material prices, but a weaker won may offset the impact,” a central bank official told Reuters by telephone.

Meanwhile, July export prices in won currency terms rose 25.1 percent from a year ago, compared with a 25.2 percent annual increase in June, which was the fastest rise since October 1998.

Import price trends are considered a supplementary indicator of future domestic inflation because the cost of imports influences consumer prices.

South Korean import and export prices (percentage growth based on won value, not seasonally adjusted):

July June May

Import prices

Over previous year (pct) 50.6 49.0 44.6

Over previous month (pct) 1.1 2.7 10.7

Export prices

Over previous year (pct) 25.1 25.2 24.0

Over previous month (pct) 0.1 1.1 7.2

Source: http://www.afxnews.com

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