Import prices in South Korea decline for a third month
South Korea's import price index fell by 2.4% in August compared with the previous month, extending its decline for a third consecutive month. This was reported by The Korea Herald, citing preliminary data from the Bank of Korea.
Impact of the strengthening won
Import prices declined by 1% in July and by 4.2% in June. The central bank explained that the South Korean won's 6.1% appreciation against the US dollar over the month partly offset the rise in Dubai oil prices. Its price increased by 15.6% month on month in August amid continued uncertainty in the Middle East.
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Raw materials rise in price, intermediate goods become cheaper
Raw material prices rose by 1.5% in August compared with July. At the same time, intermediate goods became 4% cheaper over the same period. The Bank of Korea notes that import prices are an important inflation factor because they affect production costs and consumer prices throughout the supply chain.
The export price index decreased by 3.7% in August compared with July. This was the indicator's largest monthly decline since December 2022, when it fell by 6.1% due to the strengthening of the national currency.
