High Oil Prices Push June Import Price Index Up 0.5%...Rises for 2 Consecutive Months (Comprehensive)

Bank of Korea Announces June Export and Import Price Indices

[Asia Economy Reporter Seo So-jeong] Due to the rise in international oil prices, the import price index in June increased by 0.5% compared to the previous month, marking a rise for two consecutive months. It has also been on an upward trend for 16 consecutive months compared to the same month last year. As the import price continues to rise, domestic consumer price inflationary pressure is expected to increase.

According to the export-import price index statistics released by the Bank of Korea on the 15th, the import price index in June this year (provisional figure based on KRW, 2015 level 100) was recorded at 154.84, up 0.5% from May (154.00). Compared to the same month last year, it rose by as much as 33.6%.

The import price index fell by 0.9% month-on-month in April as international oil prices slightly eased, marking a decline for the first time in four months, but it turned upward again in May and continued to rise in June. However, the increase was smaller than the 3.8% rise in May.

Son Jin-sik, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, explained, "Prices rose mainly for mining products amid the rise in international oil prices." In particular, the average international oil price in June, based on Dubai crude, surpassed the $110 level at $113.27, a 4.7% increase from May ($108.16), which had a significant impact.

Looking at the items, raw materials rose 3.1% month-on-month, mainly due to mining products (3.8%), while intermediate goods fell 1.5%, mainly due to coal and petroleum products (-6.4%) and primary metal products (-1.4%). Capital goods and consumer goods showed a 0.1% increase and remained flat, respectively, compared to the previous month. Team leader Son said, "Prices of mining products such as crude oil rose, but coal and petroleum product prices fell due to concerns about economic slowdown and decreased demand."

The export price index in June was 132.81, up 1.1% from May (131.32). It has been rising for six consecutive months since falling in December last year. Compared to the same month last year, it rose 23.7%, marking 17 consecutive months of increase.

By item, coal and petroleum products (7.2%) and chemical products (0.9%) rose due to the influence of oil prices, while primary metals fell 1.5% due to a decline in raw material prices. Agricultural, forestry, and fishery products fell 1.2%.

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