South Korea’s import prices fall 1% in July, extending two-month decline
South Korea’s import prices fell for a second consecutive month in July, as a stronger won and lower oil prices amid continued turmoil in the Middle East weighed on the index, the Bank of Korea said Friday. The central bank’s preliminary data showed that import prices fell 1% month over month in July, following a sharp 4.2% decline in June. Compared with a year earlier, the index rose 18.7%. The Bank of Korea said the monthly decline in July reflected a 2% appreciation in the won against the U.S. dollar during the month and a 3.4% drop in Dubai crude prices, South Korea’s benchmark crude. Raw-material prices rose 0.8% month over month in July, while prices for intermediate goods fell 2.2%. The Bank of Korea said import prices are a key driver of inflation because they affect production costs and consumer prices across the supply chain. Despite the won’s appreciation, the export price index rose 1% month over month in July, driven by higher prices for electronic products, according to Bank of Korea data. The index surged 49.1% from a year earlier.
The central bank’s preliminary data showed that import prices fell 1% month over month in July, following a sharp 4.2% decline in June. Compared with a year earlier, the index rose 18.7%.
The Bank of Korea said the monthly decline in July reflected a 2% appreciation in the won against the U.S. dollar during the month and a 3.4% drop in Dubai crude prices, South Korea’s benchmark crude.
Raw-material prices rose 0.8% month over month in July, while prices for intermediate goods fell 2.2%.
The Bank of Korea said import prices are a key driver of inflation because they affect production costs and consumer prices across the supply chain.
Despite the won’s appreciation, the export price index rose 1% month over month in July, driven by higher prices for electronic products, according to Bank of Korea data. The index surged 49.1% from a year earlier.