S.Korea Feb import prices extend record falling streak for 18th month

SEOUL: South Korea's import prices in annual terms extended their longest falling streak on record in February for an 18th month as global commodity prices stayed low, central bank data showed on Wednesday.

Import prices in won terms fell 4.8 percent in February compared with the same period a year ago, following a 3.0 percent fall in January. It was the sharpest fall since November last year.

A Bank of Korea official said the decline was mainly due to a fall in international commodity prices, as crude oil fell 5.5 percent last month from a year earlier.

Intermediate goods prices, which have the heaviest weighting in the import price index, fell the most, dropping 6.1 percent. Non-ferrous metals led the declines, tumbling 13.8 percent on an annual basis.

The strengthening of the won also had a hand in lowering prices, the central bank said. The currency rose 1.4 percent in February from the previous 12 months.

Export prices in won terms edged down 3.6 percent in February compared with a year earlier.

The data was released a day ahead of the Bank of Korea's monthly monetary policy meeting, where it is widely expected to hold rates for a 10th straight month as it eyes the economy's slow recovery amid low inflationary pressures.