Korea's import prices rise for fourth month

Korea's import prices rose in April for the fourth month in a row, driven by the oil price increase and the local currency's depreciation against the dollar, central bank data showed Tuesday.

Containers for exports are stacked at a port in the southeastern city of Busan on April 1. [NEWS1]

Korea's import prices rose in April for the fourth month in a row, driven by the oil price increase and the local currency's depreciation against the dollar, central bank data showed Tuesday.

The import price index rose 3.9 percent last month from a month earlier following a 0.5 percent on-month gain the previous month, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, prices also rose 2.9 percent last month following a 0.5 percent on-year decline the previous month, the data showed.

The April tally was based on the new base year of 2020.

Import prices are a major factor that determines the path of the country's overall rate of inflation.

The Dubai crude price, Korea's benchmark, stood at $89.17 per barrel in April, up from $80.88 the previous month, according to the central bank.

The won averaged 1,367.83 against the greenback last month, slightly up from 1,330.70 the previous month.

Import prices of raw materials rose 5.5 percent on month last month, while those for intermediate goods gained 3.7 percent over the cited period.

The export price index also advanced 4.1 percent in April after a 0.3 percent on-month gain the previous month, according to the data.

Korea's inflation rose 2.9 percent in April on year, marking the first time in three months that the index fell below 3 percent.

Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the 10th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]