Import prices break 4-month streak of gains to dip in May

The import price index fell 1.4 percent on month in May, and 4.6 percent on year.

Gasoline and diesel prices are shown at a gas station in Seoul on Sunday. [YONHAP]

Korea's import prices took a dip in May, ending a four-month streak of gains due to a fall in oil prices and the local currency's appreciation against the dollar, central bank data showed Friday.

The import price index declined 1.4 percent last month from a month earlier following a 3.8 percent on-month increase the previous month, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, prices also rose 4.6 percent last month following a 2.9 percent on-year advance the previous month.

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

The Dubai crude price, Korea's benchmark, stood at $84.04 per barrel in May, down from $89.17 the previous month, according to the central bank.

The won averaged 1,365.39 against the greenback last month, slightly up from 1,367.83 the previous month.

Import prices of raw materials fell 3.7 percent on-month last month, while those for intermediate goods slipped 0.3 percent over the cited period.

The export price index also fell 0.4 percent in May after a 4.4 percent on-month gain the previous month, according to the data.

The country's consumer prices, a key gauge of inflation, rose 2.7 percent on-year last month, compared to the 2.9 percent on-year rise a month earlier.

It marked the second straight month that price growth slowed down and the figure stayed below 3 percent.

Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the 11th 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]