A signboard at a gas station in Seoul shows gas prices, with gasoline, diesel and premium gasoline prices (from top to bottom). (Yonhap)
A signboard at a gas station in Seoul shows gas prices, with gasoline, diesel and premium gasoline prices (from top to bottom). (Yonhap)

South Korea's import prices declined for the fourth consecutive month in May due mainly to a drop in global oil prices, central bank data showed Tuesday.

The import price index fell 3.7 percent in May from the previous month, following a 2.3 percent decline in April, according to the preliminary data from the Bank of Korea.

It marked the fourth straight monthly decrease and the sharpest drop since November 2023, when the index fell by 4.3 percent on-month.

The decline came as the average price of Dubai crude, South Korea's benchmark, dipped 5.9 percent in May to $63.73 per barrel, data showed.

Also, the won averaged at 1,394.49 to the US dollar in May, compared with the previous month's 1,444.31.

Import prices are a key factor influencing the country's overall inflation as they affect production costs and consumer prices through the supply chain.

On a year-on-year basis, the import price index declined 5 percent in May.

By category, import prices of raw materials fell 5.5 percent in May, while those of intermediate goods slid 3.2 percent, according to the BOK.

The export price index fell 3.4 percent in May from the previous month, marking the sharpest decline since November 2023, when the index dropped 3.4 percent.

The country's consumer prices grew at the 1 percent level for the first time in five months in May on falling oil prices. (Yonhap)