November Import Prices Down 0.6% from Previous Month... First Decline in 7 Months

[Sejong=Asia Economy Reporter Son Seon-hee] While the soaring international oil prices have paused, import prices fell last month for the first time in seven months.

According to the 'November Export and Import Price Index' released by the Bank of Korea on the 14th, the import price index (provisional figure in Korean won terms, base year 2015=100) last month was 130.17, down 0.6% from October (130.92). This marks the first decline in import prices in seven months since April (-0.2%).

However, compared to the same month a year ago, it was 35.5% higher. Although the rate of increase has somewhat slowed compared to the previous month (36.3%), it remains at a high level. Year-on-year, the index has continued to rise for nine consecutive months since March (9.0%).

The main reason for the decline in import prices after seven months is attributed to international oil prices. The monthly average price of Dubai crude oil slightly decreased from $81.61 per barrel in October to $80.30 last month. Raw material prices, centered on minerals, fell 1.2% from the previous month, and intermediate goods prices also dropped 0.3% due to decreases in prices of primary metal products, coal, and petroleum products.

Capital goods prices fell 0.5% from the previous month, while consumer goods prices rose 0.2% during the same period.

Choi Jin-man, head of the Price Statistics Team at the Bank of Korea’s Economic Statistics Bureau, said, "Import prices fell influenced by international oil prices, but it is difficult to determine whether the inflation peak has been reached." He added, "Although oil prices have continued to decline compared to the previous month in December, we need to observe the trend further."

The export price index last month also recorded 115.80, down 1.0% from October (116.93). Similarly, this is the first decline in a year since November last year (-0.5%), due to the fall in international oil prices. However, compared to the same month a year ago, it rose 25.5%, showing a continuous increase for ten consecutive months since February (0.6%).

Prices of manufactured goods such as coal and petroleum products, computers, electronics, and optical devices fell 1.0% from the previous month. In particular, agricultural, forestry, and fishery products showed a 2.1% decline compared to the previous month. Semiconductor prices remained flat compared to the previous month.

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