Import Prices Hit Highest in 9 Years and 5 Months Due to Soaring Oil Prices

February at 137.34, Up for 2 Consecutive Months
29.4% Increase Compared to Same Month Last Year
Dubai Oil Rises 10.7% Month-on-Month
Export Prices Also Up for 2 Consecutive Months

[Asia Economy Reporter Seo So-jung] Due to the sharp rise in oil prices, the import price index in February increased for the second consecutive month, reaching the highest level in 9 years and 5 months since September 2012. Amid the ongoing surge in international oil and raw material prices caused by Russia's invasion of Ukraine, the value of the Korean won is also rapidly falling, leading to expectations that import prices will continue to rise for the time being.

According to the export-import price index statistics released by the Bank of Korea on the 15th, the import price index for February this year (provisional figure based on the Korean won, 2015 level = 100) was 137.34, up 3.5% from January (132.67). Compared to the same month last year, it rose by as much as 29.4%.

The significant increase was influenced by the rise in international oil prices, with Dubai crude oil prices increasing from $83.47 per barrel in January to $92.36 in February, a 10.7% rise. International oil prices rose by 51.7% compared to the same month last year. The depreciation of the Korean won also had an impact. The average KRW-USD exchange rate in February (1,198.34 won) rose 0.4% from January and 7.8% compared to a year ago.

By item, the primary metal products index (172.43) and metal processed products index (124.89) reached record highs since the statistics began. The mining products index was 181.67, the highest in 8 years and 6 months since August 2013 (182.68), and the chemical products index was 124.25, the highest in 9 years and 5 months since September 2012 (124.65).

Son Jin-sik, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "Raw material prices, centered on mining products, rose 7.2% compared to January, and intermediate goods such as coal and petroleum products, primary metal products, and chemical products also increased by 2.4% compared to January."

The export price index in February also rose for the second consecutive month, increasing 2.1% from the previous month to 118.21. This was the highest level in 9 years and 8 months since June 2012 based on the index. Although it rose 20.3% compared to the same month last year, the upward trend has been slowing for three consecutive months.

Son said, "Looking at the export price index by item, all items showed an upward trend, with primary metal products reaching a record high of 117.30. Coal and petroleum products reached 183.57, the highest in 9 years since February 2013."

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