South Korea Import Prices Fall Second Month in July

The Bank of Korea reported that South Korean import prices fell by 1 percent in July, marking the second consecutive monthly decline. This trend was primarily driven by a 3.4 percent drop in the price of Dubai crude oil, which averaged 76.75 U.S. dollars per barrel, and a 2 percent retreat in the won-versus-dollar exchange rate to 1,497.43 won.

While import prices for consumer, capital, and intermediary goods decreased, prices for imported raw materials rose 0.8 percent, ending a four-month decline. In contrast, the export price index rose 1 percent in July, bolstered by increased prices for semiconductors and computers.

On a yearly basis, the data shows a significant divergence between trade costs and revenues. Export prices surged 49.1 percent compared to the previous year, while import prices increased by 18.7 percent over the same period.