The import prices of South Korea's key raw materials fell for the first time in 11 months in May, led by a drop in the costs of non-ferrous metals and textiles, a trade association said Wednesday.

   The Korea Importers Association (KOIMA) said its price index for imported commodities stood at 405.01 last month, 10.07 points, or 2.43 percent, down from the previous month.

   The index rose for the 10th straight month in April, marking the highest level since July 2008, when the comparable figure was 453.54.

   Using 1995 as the base year, the benchmark index covers 56 key imported raw materials, including crude oil and soybeans.

   South Korea is facing difficulties taming inflation as high oil prices and the sustained economic recovery are resulting in upward pressure.

   The growth of consumer prices slowed slightly to 4.1 percent on-year in May from a 4.2 percent on-year expansion in April. But core inflation, which excludes volatile oil and food prices, rose 3.5 percent last month from a year earlier, the highest increase in 23 months.

   South Korea's central bank raised the key interest rate by a quarter percentage point last week to 3.25 percent following a two-month freeze in an effort to slow growing inflationary pressure due to the economic recovery.

   The bank has raised the key rate three times since last July from a record low of 2 percent in a bid to normalize its soft policy stance, which was taekn taken to fight global financial turmoil.

Source: Yonhap News (June 15, 2011)