Import prices down for 2nd month in May on decline in oil prices

SEOUL, June 16 (Yonhap) -- Import prices fell for the second month in a row in May due to a decrease in oil prices amid the Middle East conflict, central bank data showed Tuesday.

The import price index fell 0.3 percent on-month following a 2.1 percent on-month decline in April, according to the preliminary data from the Bank of Korea (BOK).

On an on-year basis, the index climbed 24.8 percent in May.

The decline came as the price of Dubai crude, South Korea's benchmark, fell 2.4 percent on-month to US$103.15 per barrel last month.

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

Prices of raw materials fell 1 percent in May from a month earlier, while intermediate goods remained unchanged 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 May export price index increased 0.3 percent from the previous month, extending its on-month rise for the 11th month.

Compared with a year earlier, the index jumped 46.9 percent.

sam@yna.co.kr
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