October Import Prices Up 35.8% Year-on-Year... Largest Increase in 13 Years

Announcement of 'October Export and Import Price Index' on the 12th

[Asia Economy Reporter Jang Sehee] The import price index for October reached its highest level in 8 years and 8 months due to the rise in international oil prices. As the upward trend in international oil prices continues, prices in November are also expected to rise.

According to the 'October Export and Import Price Index' released by the Bank of Korea on the 12th, the import price index for October (provisional figure in Korean won, base year 2015 = 100) was 130.43, up 4.8% from September (124.40).

This marks the sixth consecutive month of increase compared to the previous month since May. The absolute level of the index is the highest in 8 years and 8 months since February 2013 (130.83). The year-on-year increase was 35.8%, the highest in 13 years since October 2008 (47.1%).

Choi Jinman, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, stated, "The rise in international oil prices and raw material prices influenced the increase in export and import prices. The price of Dubai crude oil in October rose 12.4% compared to the previous month, and the CRB index, a raw material price index, increased by 6.5% month-on-month."

Looking at the month-on-month increase rates by item, notable rises were seen in raw materials such as mining products (11.1%), intermediate goods like coal and petroleum products (10.8%), and primary metal products (5.5%). This is because international oil prices, based on Dubai crude, rose 12.4% in one month in October. Compared to the same month last year, it increased by 100.7%.

The export price index for October was 116.18, 1.6% higher than September (114.38), marking the 11th consecutive month of increase. It rose 25.3% year-on-year. Coal and petroleum products (12.3%) and chemical products (2.2%) increased month-on-month, while computers, electronics, and optical equipment fell by 2.2%.

Semiconductor prices also dropped by 3.5%. In particular, DRAM and TV LCD prices fell by 4.6% and 16.8%, respectively. Regarding this, Choi explained, "This is due to the continued global supply chain bottlenecks and a decrease in non-face-to-face demand for DRAM."

There are forecasts that oil prices will rise further due to factors such as increased oil demand and substitution of oil consumption caused by rising natural gas prices. In fact, from the 1st to the 8th of this month, Dubai crude oil rose 0.15% compared to the previous month. However, raw material prices fell by 0.21%.

Choi said, "Morgan Stanley forecasts that oil prices could rise if winter heating demand overlaps, and since international oil prices are showing a slight upward trend, we need to watch the situation a bit longer."

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