Rising International Oil Prices and Exchange Rates... February Export and Import Prices Increase Together for 3 Consecutive Months

Bank of Korea 'February 2021 Export and Import Price Index'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] With the rise in international oil prices and the won-dollar exchange rate, export and import prices increased for three consecutive months compared to the previous month. Export prices turned to an increase compared to the same month last year for the first time in 21 months.

According to the 'February 2021 Export and Import Price Index' released by the Bank of Korea on the 16th, export prices in February rose 3.1% month-on-month as the won-dollar exchange rate increased and export prices of coal and petroleum products, chemical products, and others went up. This marks the third consecutive month of increase. Compared to the same month last year, export prices rose 0.2%, turning to an increase after 21 months.

The average won-dollar exchange rate rose 1.3% from 1,097.49 won in January to 1,111.72 won in February.

Export prices of agricultural, forestry, and fishery products increased 0.7% month-on-month, while manufactured goods rose 3.1%. This was due to increases in coal and petroleum products (13.1%) and chemical products (4.9%).

Kim Young-hwan, head of the price statistics team at the Bank of Korea, stated, "Following global vaccination efforts, there were expectations of economic recovery, and with signs of recovery in the US and China, export prices rose. Early-stage price increases during economic recovery seem to help companies restore profitability, and if this trend continues, it could be a positive signal for economic recovery."

The import price index also rose 3.8% month-on-month due to the increase in international oil prices but fell 0.8% compared to the same month last year. The main factor driving the rise in import prices was the increase in Dubai crude oil prices, which averaged $54.82 per barrel in January and rose 11.1% to $60.89 in February.

By item, export prices of mining products rose 8.3%, causing raw material prices to increase 7.4%. Intermediate goods rose 3.4% due to increases in coal and petroleum products (7.4%) and chemical products (3.8%). Capital goods and consumer goods each rose 0.8% month-on-month.

This content was produced with the assistance of AI translation services.