Seoul:Import prices in South Korea fell in October, influenced by a stronger South Korean won and declining oil prices, as indicated by central bank data released on Friday.
According to Yonhap News Agency, the import price index decreased by 1.8 percent in October compared to the previous month. This decline follows a 1.9 percent increase in September, as per preliminary data from the Bank of Korea (BOK). The index had been experiencing a decline for three consecutive months since June.
The Bank of Korea reported that the month-on-month decrease occurred as the Korean won appreciated against the U.S. dollar by 1.6 percent over the period. Additionally, the price of Dubai crude, which serves as South Korea's benchmark, fell by 2.6 percent. The BOK data also highlighted a 3 percent decrease in raw material prices and a 1 percent drop in intermediate goods prices in October compared to the previous month.
Import prices play a crucial role in driving inflation, as they influence production costs and consumer prices across the supply chain, According to central bank. Furthermore, the BOK data revealed that the export price index for October increased by 0.7 percent from the previous month, marking a reversal from a 0.5 percent decline in September and a 3.5 percent drop in August.