Korea’s October import prices fall 1.8% on stronger won, lower oil prices

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South Korea’s import prices fell in October as the stronger won and lower international oil prices reduced the cost of imported goods. According to data released by the Bank of…

South Korea’s import prices fell in October as the stronger won and lower international oil prices reduced the cost of imported goods.

According to data released by the Bank of Korea on Friday, the import price index stood at 156.86 in October, down 1.8 percent from 159.72 in September. The index, denominated in Korean won, uses 2020 as its base year of 100. The October figure is preliminary.

The index fell 4.2 percent in June, 1 percent in July, and 2.2 percent in August before rising 1.9 percent in September.

Raw material prices declined 3 percent from the previous month, mainly due to lower prices of mining products, including crude oil.

Intermediate goods prices fell 1 percent, as declines in primary metal products (-4.2 percent) and electrical equipment (-3.4 percent) more than offset a 3.5 percent increase in coal and petroleum products.

Capital goods and consumer goods prices fell 1.8 percent and 1.4 percent, respectively.

The monthly average won-dollar exchange rate fell 1.6 percent to 1,337.66 won per dollar in October from 1,359 won in September. The average price of Dubai crude also declined 2.6 percent to $110.73 per barrel from $113.71.

Import prices measured in contract currencies fell 0.2 percent from the previous month. The BOK attributed the sharper decline in the won-denominated index to the stronger won.

The central bank said that although the exchange rate had edged up through November 11, a 13 percent drop in international oil prices was expected to put downward pressure on import prices.

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