Import prices dip in August on fall in oil prices, strong won

SEOUL, Sept. 13 (Yonhap) -- South Korea's import prices fell in August, snapping a two-month rise mainly due to a fall in global oil prices and the strengthening Korean won, central bank data showed Friday.

The import price index declined 3.5 percent last month from a month earlier following a 0.4 percent on-month gain the previous month and a 0.6 percent fall in June, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, import prices also rose 1.8 percent last month following a 9.9 percent on-year advance the previous month, the data showed.

Import prices are a major factor that determines the path of the country's overall rate of inflation.

The Dubai crude price, South Korea's benchmark, stood at US$77.60 per barrel in August, down from $83.83 the previous month, according to the central bank.

The Korean won averaged 1,354.15 against the greenback last month, up from 1,383.38 the previous month.

Import prices of raw materials dipped 3.5 percent on-month last month, while those for intermediate goods gained 5.1 percent over the cited period.

The export price index also fell 2.6 percent last month after a 0.8 percent on-month rise the previous month, according to the data.

South Korea's inflation slowed to the lowest level in nearly 3 1/2 years in August on easing prices of farm produce and global oil.

Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the 13th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

sam@yna.co.kr
(END)