Korean import prices climb 2.2% in January amid rising oil prices

A port in Busan [YONHAP]

Korea's import prices bounced back in January after a two-month decline largely thanks to rising oil prices, according to central bank data Friday.

The import price index rose 2.2 percent in January compared to a month earlier following a 1.7 percent on-month dip the previous month, according to preliminary data from the Bank of Korea (BOK).

Overall, prices are up 0.2 percent compared to a year earlier, the data showed.

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

The Dubai crude price, Korea's benchmark, stood at $78.85 per barrel in January, up from $77.33 the previous month, according to the central bank.

Import prices of raw materials rose 3.5 percent, while those for intermediate goods gained 1.6 percent.

The export price index also advanced 3.2 percent in January after a 1 percent on-month fall the previous month.

Meanwhile, Korea's inflation fell below 3 percent for the first time in six months in January, rising 2.8 percent on-year, compared with a 3.2 percent increase a month earlier.

It was the first time the figure fell below the 3 percent level since July last year when prices gained 2.4 percent.

Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the eighth straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

The central bank signaled it may shift toward ending its restrictive stance.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]