Import prices fall again in Oct. on stronger S. Korean won, lower oil prices

South Korea's import prices dropped once again in October, according to data released by the central bank on Friday. The index fell by 1.8 percent month-on-month, marking a reversal from a 1.9 percent increase seen in September. This is the third consecutive monthly decline since June. The Bank of Korea (BOK) attributes the on-month decrease to the South Korean won strengthening by 1.6 percent against the US dollar and Dubai crude oil prices falling by 2.6 percent.

In October, raw material prices decreased by 3 percent compared to the previous month, while intermediate goods dropped by 1 percent over the same period, as per BOK data. Import prices play a crucial role in inflation, impacting production costs and consumer prices across the supply chain, stated the central bank. The BOK data also revealed that South Korea's export price index increased by 0.7 percent in October from the previous month, reversing a 0.5 percent on-month decline in September and a 3.5 percent drop in August.