Raw material prices rise for 3rd month

The prices of raw materials and intermediate goods, which are considered as leading indicators for inflation, soared for the third consecutive month since last June. So analysts say that inflationary pressure will increase in the coming months.

The Bank of Korea reported Tuesday that prices in this category rose 0.1% from August, marking the third straight month of increase. They rose by 1.7% and 0.5% in June and July. It represented a 6.3% increase from a year ago, but the rise slowed compared with July's 8.6% jump.

BOK officials attributed the price hike in raw materials and intermediates to the increases in the prices of petroleum products. They noted that the situation suggests the domestic inflationary pressure would increase in the future.

Park Hyeon-Jin witness@donga.com