Import prices fall again in October on stronger Korean won, lower oil prices
Containers are stacked at a port in the southeastern city of Busan, Nov. 1. Yonhap
Import prices fell again in October driven by a stronger Korean won and lower oil prices, central bank data showed Friday.
The import price index dropped 1.8 percent month-on-month last month, reversing from a 1.9 percent gain in September, according to the preliminary data from the Bank of Korea (BOK).
The index had declined for three consecutive months since June.
The BOK said the month-on-month decline came as the Korean won strengthened against the U.S. dollar by 1.6 percent over the one-month period, while the price of Dubai crude, Korea's benchmark, fell 2.6 percent.
Prices of raw materials decreased 3 percent in October from a month earlier, while intermediate goods dropped 1 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 October export price index climbed 0.7 percent from the previous month, turning around from a 0.5 percent month-on-month decline in September and a 3.5 percent drop in August.