South Korean import price growth in August eased from its fastest pace in over a decade in July on falling oil and non-ferrous metal prices, central bank data showed on Tuesday.

South Korean import prices in won terms jumped 42.6 percent in August from a year earlier after recording 50.6 pct growth in July, the strongest pace since February 1998, the Bank of Korea said in a statement.

“It’s hard to say whether the import price growth has already peaked or not as the won’s sharp decline should offset the positive impact of lower oil prices,” a central bank official said.

A weaker won inflates won-based import prices. The South Korean currency has shed more than 10 percent against the dollar since late July.

Meanwhile, August export prices in won currency terms rose 21.9 percent from a year ago, compared with a 25.1 percent annual increase in July, with higher manufacturing costs largely reflected in price tags.

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

The import price data followed a similar easing in consumer and producer prices for August.

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

Aug July June

Import prices

Over previous year (pct) 42.6 50.6 49.0

Over previous month (pct) -4.4 1.1 2.7

Export prices

Over previous year (pct) 21.9 25.1 25.2

Over previous month (pct) -1.4 0.1 1.1

Source: http://www.afxnews.com

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