Import prices fall at fastest clip in 3.5 years in June on oil price decline

Import prices fell at the steepest pace in three years and six months in June, driven by lower oil prices amid the Middle East conflict, central bank data showed Wednesday.

The import price index fell 4.4 percent on month following a 0.2 percent on month rise in May, according to the preliminary data from the Bank of Korea (BOK).

It marked the sharpest on-month decline since December 2022, when the index slid 6.5 percent.

On an on-year basis, the index climbed 20.6 percent in June.

The decline came as the price of Dubai crude, Korea's benchmark, fell 23 percent on month to $79.45 per barrel last month.

The numbers have a direct bearing on Korea as the country relies heavily on energy imports.

Prices of raw materials fell 10.3 percent in June from a month earlier, while intermediate goods dropped 3.2 percent over the cited period.

Import prices are a key driver of inflation, as they affect production costs and consumer prices throughout the supply chain, according to the central bank.

The BOK data showed that the June export price index remained unchanged from the previous month as an increase in electronics products prices offset a decline in oil products prices amid a weakening local currency.

Compared with a year earlier, the index jumped 48.9 percent.

Yonhap