South Korea's import prices in March surged by 18.4% year-on-year, marking the highest increase in over three years.

Data released by the Bank of Korea on Wednesday showed that due to the surge in oil prices triggered by the Middle East conflict, South Korea's import prices in March recorded the highest increase in over three years. The import price index released by the Bank of Korea showed that import prices in Korean won increased by 18.4% year-on-year in March, the largest year-on-year increase since October 2022. The increase in February was 1.6%. Import prices rose by 16.1% month-on-month, the largest increase since January 1998, mainly due to a 88.5% surge in oil prices, setting a new record. The impact of import prices on domestic consumer prices usually has a lag of one to three months. An official from the Bank of Korea said in a briefing before the data release, "It is currently difficult to predict the data for April, as the issue of interrupted raw material supplies is difficult to solve in the short term." Consumer prices in South Korea rose by 2.2% in March compared to the same period last year, lower than expected, due to the government setting a ceiling on fuel prices. However, policymakers and economists warned that inflation risks still lean towards the upside.