Stronger won drives third monthly import-price fall

Import prices fell for the third consecutive month in August as a stronger won helped offset a rise in oil prices amid protracted Middle East uncertainties, central bank data showed Tuesday.

The import price index fell 2.4 percent on month last month following a 1.0 percent dip in July and a 4.2 percent on-month drop in June, according to the preliminary data from the Bank of Korea (BOK).

The BOK said the on-month decline came as the won strengthened against the dollar by 6.1 percent over the one-month period, which partly offset a 15.6 percent on-month rise in the price of Dubai crude, Korea's benchmark.

Prices of raw materials rose 1.5 percent in August from a month earlier, while intermediate goods dropped 4 percent over the cited period, according to the BOK data.

Import prices are a key driver of inflation, as they affect production costs and consumer prices throughout the supply chain, according to the central bank.

The BOK data showed that the August export price index fell 3.7 percent from the previous month, the sharpest since December 2022, when the index fell 6.1 percent due to the strong currency.

Yonhap