South Korea's import prices decline in July as currency firms

South Korea's import prices declined last month as the local currency rose against the U.S. dollar, offsetting higher crude oil prices, central bank data showed Monday. In local currency terms, import prices fell 0.8 percent in July from a month earlier after gaining 2.1 percent in the prior month, according to the Bank of Korea (BOK). From a year earlier, the prices slid 4.3 percent last month, maintaining its downward trend for 11 straight months. The South Korean currency appreciated 0.7 percent against the dollar last month, lowering prices of goods imported from overseas. It relieved an upward pressure from higher prices of Dubai crude, South Korea's benchmark, which gained 3.4 percent in July. Prices in imported raw materials dipped 0.2 percent in July from a month earlier after advancing 1.9 percent in the previous month. Those for intermediate goods such as oil, chemical and steel products fell 1.2 percent on month in July. Capital goods prices slid 1.4 percent, and those for consumer goods retreated 0.5 percent. In contract currency terms, import prices rose 0.1 percent on month in July, indicating that global product prices advanced amid higher oil costs.