Import prices rise by most in 9 months in October on weaker won: BOK
Containers are stacked at a port in the city of Pyeongtaek, Gyeonggi Province, Oct. 28. Yonhap
Import prices increased at the fastest clip in nine months in October, despite falling global oil prices, due mainly to a weaker Korean won, central bank data showed Friday.
The import price index climbed 1.9 percent from a month earlier in October, following a 0.2 percent on-month rise in September, according to preliminary data from the Bank of Korea (BOK).
It marks the sharpest on-month increase since January, when the index jumped 2.2 percent, as well as the fourth consecutive month of rise.
From a year earlier, the index gained 0.5 percent.
The uptick came as the local currency sharply weakened to an average of 1,423.36 won against the U.S. dollar last month, compared with 1,391.83 won in September.
The price of Dubai crude, Korea's benchmark, fell 7.2 percent on-month to $65 per barrel.
Import prices are a key driver of inflation, as they affect production costs and consumer prices across the supply chain.
The data also showed that the export price index rose for the fourth consecutive month in October, surging 4.1 percent from the previous month.
"In November, the local currency has weakened further and global oil prices have been trending upward. But uncertainties remain regarding import and export prices, and it remains to be seen how the indexes will move going forward," Bank of Korea official Lee Moon-hee told a press briefing.