Seoul: Import prices in South Korea have risen for the third consecutive month in September, primarily driven by a weaker Korean won and increasing global oil prices, as revealed by central bank data on Friday. The import price index witnessed a 0.2 percent rise on a month-on-month basis in September, following a 0.3 percent increase in August.
According to Yonhap News Agency, the recent uptick in import prices can be attributed to the depreciation of the local currency, which averaged 1,391.83 won against the U.S. dollar in September, compared to 1,389.66 won in August. Additionally, the price of Dubai crude, which serves as a benchmark for South Korea, saw a 0.9 percent on-month increase, reaching US$70.01 per barrel.
These import prices play a crucial role in driving inflation, influencing both production costs and consumer prices throughout the supply chain. Alongside the import prices, export prices also rose for the third month in a row, climbing 0.6 percent from the previous month.
Lee Moon-hee, a Bank of Korea official, emphasized during a press briefing that global oil prices and the won-dollar exchange rate have been moving in opposite directions recently, contributing to significant uncertainty in both domestic and global economic conditions. The Bank of Korea intends to closely monitor these developments to better understand their potential impact on the economy.