SEOUL: Korea’s import prices fell to the lowest level in over eight years in January on declining crude oil prices, central bank data showed Monday. The import price index came to 75.16 last month, the lowest since the 74.86 posted in October 2007, according to preliminary data from the Bank of Korea.
The January figure also marks a 1.3 percent drop from the previous month, quickening from a revised 1.1 percent on-month drop in December. From last year, it marks a 6.1 percent decline.
The drop was mostly attributed to plunging global oil prices. The average price of Dubai crude was $26.86 per barrel in January, compared with the average of $34.92 per barrel the previous month. On Jan.7, Dubai crude fell below the $30 mark for the first time in nearly 12 years. Export prices also remained weak in January.
The cheap oil prices pulled down the price of Korea’s major export items, including petroleum and petrochemical products that accounted for nearly one-fourth of the country’s overall exports prior to the fall in global oil prices.
Export prices, in terms of local currency, posted a slight rebound of 0.6 percent month-on-month in January, compared with a 6 percent drop in the previous month. However, from a year earlier, they fell 1.3 percent.
The Trade Ministry had recently reported that Korean exports posted an on-year drop for the 13th consecutive month in January. Imports tumbled 20.1 percent on-year to $31.4 billion.
