Korea's import price index falls for first time in 3 mos, upside for trade deficit, inflation

[Photo by MK DB]

South Korea’s import price fell for the first time in three months in July on softening in crude prices, an upside for the economy mired in widening trade deficit and inflation running above 6 percent from expensive imports of commodities.

According to the Bank of Korea Friday, the import price index came to 153.49 in July, down 0.9 percent from previous month. The index, nevertheless, is 29.9 percent higher compared to a year ago.

Import price of minerals showed the steepest monthly decline, falling 2.8 percent in a month. It is largely due to softening in oil prices. Dubai crude price slipped 8.9 percent in a month to average at $103.14 in July.

Import price of agricultural, fishery and forestry goods decreased 1.1 percent, coal/petroleum products 3.3 percent, and primary metal products 2.3 percent.

Export price index came to 129.76 in July, down 2.1 percent on month. It is the first monthly decline since January this year. But it is up 16.3 percent compared to a year ago.

Price of coal/petroleum products tumbled 11.0 percent, primary metal products 3.1 percent, and chemicals 2.2 percent. By item, export price of gasoline sank plunged 18.0 percent, diesel 16.8 percent and DRAM chip 8.8 percent.

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