Import prices fall for 2nd month in July on oil prices decline, stronger won

Seoul, Aug. 14 (Yonhap) – Import prices declined for the second straight month in July, thanks to a stronger Korean won and lower oil prices amid ongoing Middle East tensions, according to central bank data released Friday. The import price index dropped 1 percent month-over-month, following a 4.2 percent decline in June, as per preliminary figures from the Bank of Korea (BOK).

Year-on-year, the index increased 18.7 percent in July. The BOK explained that the month-over-month decrease was driven by the Korean won strengthening against the U.S. dollar by 2 percent over the month and Dubai crude prices slipping 3.4 percent. Raw material prices rose 0.8 percent in July, while intermediate goods fell 2.2 percent over the period.

Import prices, a key factor in inflation, influence production costs and consumer prices across the supply chain, as stated by the central bank. The BOK data revealed that the export price index rose 1 percent in July from the prior month due to higher electronics prices, even with the strong currency. Compared to the previous year, the index surged 49.1 percent.