South Korea's import prices fall to 9-year low on strong currency

South Korea's import prices declined last month to the lowest in about 9 years as local currency appreciated to the U.S. dollar, central bank data showed on Tuesday.

The import price index slumped 1.9 percent from a month earlier to stand at 74.44 in August, the lowest figure in about 9 years, according to the Bank of Korea (BOK).

Global oil prices advanced last month, but the South Korea's currency's appreciation to the dollar pulled down the prices for goods imported from overseas.

The won/dollar exchange rate averaged 1,111.68 won versus the greenback, down 2.8 percent from the previous month. The lower exchange rate means the South Korean currency's ascent to the dollar.

Dubai crude, South Korea's benchmark, averaged 43.64 dollars per barrel in August, up 2.6 percent from a month earlier.

Prices for imported coal and oil products tumbled 4.9 percent in August from a month ago, with those for chemicals and primary metals sliding 2.6 percent and 2.5 percent respectively.

The export price index came in at 77.41 in August, down 1.9 percent from the prior month. It marked the lowest in almost 32 years since December 1984.

Export prices for farm goods slipped 2.1 percent, with those for industrial goods dipping 1.9 percent. Prices for exported transport equipments shed 2.7 percent, and those for chemicals slumped 2.6 percent.

Source : XINHUA