SEOUL: South Korea’s October import prices declined, but at their slowest pace in more than four years, as the won dropped against the US dollar, central bank data showed on Monday. Import prices, one of the gauges for future inflation movements, eased 0.6 per cent from a year earlier, the Bank of Korea said, slowing considerably from a revised 7.7 per cent decline in September. September’s fall was revised from a 7.8 per cent drop.
The sharp slowdown in the pace of decline was mainly due to the won falling around 2 per cent in October against the US dollar as investors snapped up safe-haven assets in the face of a possible rate hike by the US Federal Reserve in December. This resulted in October’s fall being the smallest since import prices rose 0.5 per cent in Aug 2012. Export prices declined 1.6 per cent on year, compared with a 8.3 per cent drop in September.
