August Import Prices Rise for Fourth Consecutive Month... Highest in 7 Years

On the 13th, the Bank of Korea Announces 'August Export and Import Price Index'

[Asia Economy Reporter Jang Sehee] Import prices have risen for four consecutive months due to the recovery in demand from upstream industries such as semiconductors and the increase in raw material prices. Since import prices affect consumer prices with a time lag, there is an analysis that this will act as upward pressure on prices in the future. Export prices also rose for the ninth consecutive month.

According to the export-import price index announced by the Bank of Korea on the 14th, the import price index (provisional figure based on Korean won, 2015=100) for August was 120.79, up 0.6% from the previous month, marking a rise for four consecutive months. This is the highest level in seven years since April 2014 (120.89). Compared to the same month last year, it rose by 21.6%.

The rate of increase is the largest in 12 years and 8 months since December 2008 (22.4%). This was influenced by the rise in chemical products and primary metal products despite the decline in international oil prices.

By item, import prices of raw materials fell 0.4% month-on-month as agricultural, forestry, and fishery products rose by 1.9%, while mining products fell by 0.7%.

Intermediate goods also rose by 1.1%. Primary metal products (1.9%) and chemical products (1.7%) surged significantly. In addition, electrical equipment (1.5%) and machinery and equipment (1.5%) also increased.

Capital goods and consumer goods also rose by 1.2% and 1.0% respectively compared to the previous month. The Bank of Korea analyzed, "Import prices rose due to the increase in raw material prices and the rise in demand from upstream industries in major countries."

Export prices in August also continued the upward trend for the ninth month. The export price index (based on Korean won) was 112.72, the highest since August 2013 (114.17). Compared to the same period last year, it rose by as much as 22.4%.

The average won-dollar exchange rate rose 1.4% from 1,143.98 won per dollar in July to 1,160.34 won in August, which had an impact.

Primary metal products rose 3.3% month-on-month, and manufactured goods also increased by 1.0%. Choi Jinman, head of the price statistics team at the Bank of Korea's Economic Statistics Department, evaluated, "Export and import prices continue to rise due to increased demand from upstream industries following economic recovery. However, the upward trend appears to have slowed due to the decline in oil prices."

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