South Korea's August Import Prices Fall 2.4% as Won Strength Offsets Oil Gains

South Korea's import prices fell for a third straight month in August, with the won's strength partly offsetting higher oil prices tied to Middle East conflict. According to Sina Finance, preliminary data from the Bank of Korea showed the import price index fell 2.4% month on month, after declines of 1.0% in July and 4.2% in June. The Bank of Korea said import prices fell because the won appreciated 6.1% against the U.S. dollar over the month, partly offsetting a 15.6% month-on-month rise in Dubai crude, South Korea's benchmark oil price. The central bank said raw material prices rose 1.5% in August, while intermediate goods prices fell 4%. It also said import prices are a key factor affecting inflation because they pass through the supply chain and influence production costs and consumer prices. Export prices fell 3.7% in August, the biggest monthly drop since December 2022, when they fell 6.1% on a stronger won.