Import prices fall for 3rd month in Aug. on stronger won

In August, import prices experienced their third consecutive monthly decline, falling by 2.4% according to the Bank of Korea (BOK). This decline occurred despite rising oil prices due to ongoing tensions in the Middle East. The BOK reported that the Korean won strengthened against the US dollar by 6.1% over the month, helping to offset the 15.6% rise in Dubai crude prices.

Raw material prices increased by 1.5% in August, while intermediate goods saw a 4% decrease over the period. Import prices play a crucial role in influencing inflation, as they impact production costs and consumer prices throughout the supply chain. The BOK also noted that the export price index fell by 3.7% in August, marking the largest monthly drop since December 2022, which was driven by the currency's strength.