South Korea’s Import prices decline for second month in September driven by falling oil prices and strong won

A signboard at a gas station shows gasoline and diesel prices in Seoul, Oct. 13. Yonhap

Korea’s import prices fell for a second straight month in September due to a fall in global oil prices and the strengthening Korean won, central bank data showed Tuesday.

The import price index declined 2.2 percent last month from a month earlier following a 3.5 percent on-month fall the previous month, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, import prices also fell 3.3 percent last month following a 1.8 percent on-year advance the previous month, the data showed.

Import prices are a major factor that determines the path of the country’s overall rate of inflation.

The Dubai crude price, Korea’s benchmark, stood at $73.52 per barrel in September, down from $77.6 the previous month, according to the central bank.

The Korean won averaged 1,334.82 against the greenback last month, up from 1,354.15 the previous month.

Import prices of raw materials dipped 3.4 percent on-month last month, while those for intermediate goods also declined 2.1 percent over the cited period.

The export price index also fell 2.3 percent last month after a 2.8 percent on-month dip the previous month, according to the data.

Korea’s consumer prices slowed to the lowest level in three and a half years in September, falling below 2 percent for the first time since early 2021.

Consumer prices, a key gauge of inflation, rose 1.6 percent on-year last month, compared with a 2 percent increase a month earlier.

September’s figure marked the lowest level since February 2021, when consumer prices grew 1.4 percent.

Earlier this month, the BOK cut its key interest rate by a quarter percentage point to 3.25 percent, the first rate reduction in 38 months, as inflation moderated markedly and domestic demand remained sluggish despite still high household debt. (Yonhap)