Consumer Prices Grow at Slower Pace

South Korea's consumer prices grew at a slower pace in March than in the previous month as the cost of oil products declined, according to Yonhap News Agency Wednesday.

According to the report by the National Statistical Office, the consumer price index rose 3.9 percent last month from a year earlier, slowing from a 4.1 percent year-on-year advance in the previous month. From February, consumer prices gained 0.7 percent.

Core inflation excluding volatile oil and food prices jumped 4.5 percent last month, compared with the previous month's 5.2 percent rise, the report showed.

"Inflationary pressure seemed to ease as oil prices dropped and a fall in the won-dollar exchange rate began to be reflected," said Ko Yoo-seun, an analyst at Daewoo Securities. "Prices are expected to stabilize further."

Oil product prices plunged 8.2 percent last month from a year earlier, leading the overall price drops, the report showed. The local currency is gaining ground with the won's value rising around 10 percent in March alone. A stronger won reduces overall import prices.

Higher inflation usually drives consumers to scale back spending, which would be a burden on the overnment as it struggles to bolster domestic demand and revive the slumping economy.