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S. Korea's import prices plunge to over 8-year low in Jan.

All News 06:00 February 15, 2016

SEOUL, Feb. 15 (Yonhap) -- South Korea's import prices continued to drop at a fast rate in January due to large cuts in global oil prices, reaching the lowest level in over eight years, 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 (BOK).

The January tally also marks a 1.3 percent drop from the previous month, quickening from a revised 1.1 percent on-month drop in December. From a year earlier, it marks a 6.1 percent decline.

The drop was mostly attributed to a further plunge in global oil prices.

The average price of Dubai crude, South Korea's benchmark, came to US$26.86 per barrel in January, compared with an average of $34.92 per barrel the previous month. The price of Dubai crude fell below the $30 mark for the first time in nearly 12 years on Jan. 7.

Export prices also remained weak in January on lackluster oil prices, which in turn pulled down the prices of South Korea's major export items, including petroleum and petrochemical products that together accounted for nearly 25 percent 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 from a month earlier last month, compared with a 6 percent on-month drop in the previous month. However, from a year earlier, they marked a 1.3 percent drop.

Amid continued cuts in prices, South Korea's exports posted an on-year drop for the 13th consecutive month in January, the trade ministry said earlier.

Outbound shipments came to $36.7 billion last month, plunging 18.5 percent from the same month last year and marking the fastest rate of fall in over six years since August 2009.

Imports tumbled 20.1 percent on-year to $31.4 billion in January.

bdk@yna.co.kr
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