South Korea Import Prices Fall for Second Consecutive Month

South Korea's import prices fell for the second consecutive month in July due to a stronger won and lower oil prices. The Bank of Korea reported that the import price index dropped by 1% on-month, following a 4.2% decline in June.

The index rose 18.7% on-year in July. The BOK attributed the monthly decline to the Korean won's 2% appreciation against the US dollar and a 3.4% decrease in Dubai crude prices, which is South Korea's benchmark.

Raw materials saw an 0.8% price increase from June, while intermediate goods dropped by 2.2%. The BOK emphasized that import prices are a key driver of inflation, affecting production costs and consumer prices throughout the supply chain.