South Korea's import prices surged in March at the sharpest pace in over three years. The Bank of Korea reported its import price index, in won terms, climbed 18.4% year-on-year. This marks the most substantial increase since October 2022.
Monthly, import prices jumped 16.1%, the largest single-month gain since January 1998. The surge was primarily fueled by a record 88.5% increase in crude oil prices, exacerbated by Middle East conflict.
Despite these rising import costs, consumer prices rose 2.2% in March year-on-year, below expectations due to government-imposed fuel price caps. However, economists caution that upside risks to inflation persist.