By Na Jeong-ju
Staff Reporter
Prices of raw materials surged 45 percent in February from a year ago on rises of international crude oil prices, the Bank of Korea (BOK) said Wednesday.
Manufacturers will reflect the rise of raw material costs in the prices of their goods.
The growth of raw material prices remained above 45 percent for the second consecutive month. In January, prices rose 45.1 percent.
The data indicates consumer prices will grow at a faster pace in the months to come. The Korean won's recent sharp falls against major currencies will raise raw material costs for manufacturers further, according to the central bank.
``Prices of crude oil and crops rose sharply in February, causing a surge in prices of intermediary goods,'' the BOK said in a press release.
The price index of raw materials and intermediary goods rose 19.3 percent last month from a year ago, the fastest pace in nine years and four months. The index had risen 4.7 percent in September of last year, but rose to 7.8 percent in October, 12 percent in November, 13.5 percent in December and 17.3 percent in January.
``Prices are expected to grow at a steeper pace in March, reflecting the won's weakness against the dollar,'' the BOK said.
BOK officials said prices of oil and other raw materials will remain strong this year on the dollar's global weakness and growing inflation risks. The prospect of an economic slowdown in the United States, a weak dollar and rising inflationary pressure around the world will affect the global demand for raw materials, they said.
Earlier this week, the central bank said import prices rose at the fastest rate in more than nine years in February, reflecting surges in international prices of crude oil, grain and metals, and the won's weakness.
Import prices grew 22.2 percent from a year ago in February, accelerating from a 21.2 percent rise in January, the sharpest rise since October 1998 when prices surged 25.6 percent.
Consumer prices grew 3.6 percent in February from a month ago, remaining above the BOK's target range of 2.5 to 3.5 percent for the third consecutive month.