Seoul: Import prices rose for the second consecutive month in August despite falling global oil prices, mainly due to a weaker Korean won, central bank data showed Tuesday. The import price index went up 0.3 percent last month from a month earlier, following a 0.8 percent hike.

According to Yonhap News Agency, the increase occurred as the local currency fell to 1,389.66 won against the U.S. dollar in August from an average of 1,375.22 won per dollar in July, the Bank of Korea (BOK) reported. Import prices are considered a crucial factor of inflation as they influence production costs and consumer prices through the supply chain.

The average price of Dubai crude, which serves as South Korea's benchmark, was US$69.39 per barrel in August, marking a 2.1 percent decrease from the previous month. Despite this decline in oil prices, the weaker won contributed to the rising import prices.

The export price index also witnessed an increase for the second consecutive month in August, gaining 0.7 percent from the previous month, as indicated by the data.

"In September, volatility in the won-dollar exchange rate and global oil prices is not significant, though we need to monitor the situation given domestic and global uncertainties," BOK official Lee Moon-hee stated during a press briefing.