Synopsis
In February, South Korea's import prices fell for the first time in five months, driven primarily by declining global oil prices, according to data from the Bank of Korea. The import price index dropped by 0.8% month-on-month, despite a year-on-year increase of 4.6%. The stronger Korean won also contributed to the price decline.Key Takeaways
- First decline in import prices in five months.
- Import price index fell 0.8% month-on-month.
- Average price of Dubai crude decreased by 3.1%.
- Korean won strengthened against the US dollar.
- Consumer prices rose 2% year-on-year in February.
Seoul, March 14 (NationPress) South Korea's import prices experienced a decline for the first time in five months during February, largely due to decreasing global oil prices, as indicated by central bank statistics released on Friday.
The import price index decreased by 0.8 percent from the prior month in February, following a 2.2 percent increase in January, according to preliminary data from the Bank of Korea (BOK), as reported by Yonhap news agency.
This marks the first decline since September, with the average price of Dubai crude, which serves as South Korea's benchmark, dropping 3.1 percent to an average of $77.92 per barrel in February, according to government statistics.
Year-on-year, the index rose by 4.6 percent in February.
Import prices for raw materials fell by 2.3 percent month-on-month in February, while prices for intermediate goods slightly decreased by 0.2 percent, as per the BOK.
Import prices play a significant role in influencing the overall inflation rate in the country.
The appreciation of the Korean won against the US dollar also contributed to the drop in import prices.
The average exchange rate was 1,445.56 won per dollar in February, contrasting with the January average of 1,455.79 won.
The export price index fell by 0.6 percent from the previous month in February, marking its first decline in five months as well.
Compared to the previous year, the index surged 6.3 percent.
Consumer prices, a crucial metric for inflation, increased by 2 percent from the previous year in February, following a 2.2 percent rise in January.
The central bank had previously projected consumer prices to grow by 1.9 percent annually in 2025.
"In March, global oil prices have continued to decline while the local currency has depreciated. We must closely observe the situation due to significant uncertainties both domestically and internationally," stated BOK official Lee Moon-hee during a press briefing.
