Seoul: South Korea's import prices declined for the fifth consecutive month in June, driven mainly by the strengthening of the won, as revealed by central bank data.

According to Yonhap News Agency, the import price index decreased by 0.6 percent in June compared to the previous month, following a 3.7 percent decline in May, based on preliminary data from the Bank of Korea (BOK). This downward trend in import prices has been consistent since February.

June's decline in import prices was attributed to the appreciation of the local currency against the U.S. dollar, with the average exchange rate at 1,366.95 won in June, compared to 1,394.49 won in May. This occurred despite an increase in global oil prices during the same period, the BOK noted.

Import prices significantly impact the country's overall inflation as they influence production costs and consumer prices throughout the supply chain. Additionally, the export price index experienced a 1.1 percent decrease in June from the previous month, marking the third consecutive monthly decline, according to the data.