Seoul: Import prices rose for the first time in six months in July, driven by rising global oil prices and a weaker Korean won, central bank data showed Thursday.
According to Yonhap News Agency, the import price index went up 0.9 percent last month from a month earlier, rebounding after a five-month losing streak, based on preliminary data from the Bank of Korea (BOK).
The increase occurred as the average price of Dubai crude, South Korea's benchmark, climbed 2.3 percent from a month earlier to an average of US$70.87 per barrel in July. The local currency also contributed to the rise, as it fell 0.6 percent against the U.S. dollar to an average of 1,375.22 won per dollar in July, according to the BOK.
Import prices play a significant role in inflation as they impact production costs and consumer prices throughout the supply chain. Additionally, the export price index rose for the first time in four months in July, gaining 1 percent from the previous month, the data showed.