By Kim Yon-se
Staff Reporter
Korea’s import prices and export prices in September took the biggest jump in six years amid hikes in oil prices.





The Bank of Korea (BOK) reported Thursday that the nation’s import prices jumped 17 percent last month from a year ago, the highest increase rate in 71 months since the 25.6 percent rate was reported in October 1998.
BOK economist Yoo Jae-hoon said the hike is attributable to skyrocketing prices of raw materials worldwide, including oil prices, compared with last year, citing a 20.1 percent climb in the prices of imported raw materials.

``The 20.1 percent recorded in September is the highest since the prices soared by 24.2 percent in October 1998,’’ he said.

International oil prices surged around 40 percent from the beginning of the year with the price of Dubai crude, the benchmark for Korea’s imports, hovering around $40 a barrel, prompting fears of low growth amid high inflation known as stagflation.

The BOK estimated consumer prices will go up 1.8 percent if the import prices rise by 10 percent.

The recent surge in oil prices is already hurting the economy. Rising gasoline prices have taken a bite out of households’ pocketbooks and have weighed down consumer spending.

Over the past five months, import prices rose by more than 10 percent from a year ago _ 14.6 percent in May, 12.4 percent in June, 14.3 percent in July and 16.7 percent in August _ after posting the below 10-percent inch-ups during the January-April period.

The BOK said export prices also climbed in May, up 12.6 percent from a year ago, the highest increase since it shot up 16.4 percent in November 1998.

BOK official Yoon said export prices are directly proportional to import prices.

kys@koreatimes.co.kr