South Korea Jan import price growth at 13-mth low

SEOUL, Feb 15 - South Korean import price growth in January fell to a 13-month low on weaker raw material prices and sluggish domestic demand, central bank data showed on Sunday, indicating that inflation pressure has been easing rapidly.

Import prices in won terms grew 16.7 percent in January from a year ago, the slowest growth since 15.6 percent in December 2007, the Bank of Korea said in a statement.

That compared with a 22.4 percent rise in December 2008. Import prices had soared more than 40 percent a month between May and October 2008, before easing to 32 percent growth in November.

Import price trends are considered a supplementary indicator of future domestic inflation because the cost of imports influences consumer prices.

Meanwhile, January export prices in won terms rose 18.6 percent from a year earlier, the slowest since a 15.7 percent gain in April 2008. That also compared with 25 percent growth in December.

South Korean import and export prices (percentage growth based on won value, not seasonally adjusted):

Jan Dec Nov Import prices Over previous year (pct) 16.7 22.4 32.0 Over previous month (pct) -1.8 -5.7 -6.6 Export prices Over previous year (pct) 18.6 25.0 31.5 Over previous month (pct) -3.4 -4.4 -3.3