Import Price Index Up 18.5% YoY... Terms of Trade Worsen for 18 Consecutive Months

Bank of Korea Announces September Trade Index and Terms of Trade

On the 11th, containers are piled up at the yard of Busan Port Sinsundae Pier. [Image source=Yonhap News]

Last month, South Korea's import value level rose by more than 18% compared to a year ago, but the rate of increase was the lowest since February last year.

According to the trade index and terms of trade (based on the dollar, preliminary figures) statistics for September released by the Bank of Korea on the 27th, the import value index (2015=100) last month was 170.87, up 18.5% from a year earlier.

This marks the 22nd consecutive month of increase. However, the rate of increase was the lowest since February last year (15.7%).

By item, mineral products surged 67.6%, agricultural, forestry, and fishery products rose 28.0%, transportation equipment among manufactured goods increased 15.9%, textile and leather products went up 15.5%, and electrical equipment rose 13.9%. On the other hand, primary metal products (-22.7%) and coal and petroleum products (-15.8%) declined.

The import quantity index was 130.49, up 7.7% from a year earlier. It rose for the third consecutive month, but the rate of increase narrowed compared to the previous month (15.7%). Mineral products (24.1%), agricultural, forestry, and fishery products (14.4%), and manufactured goods (2.7%) increased.

The export value index for September rose 2.8% year-on-year, with decreases in computers, electronics, and optical equipment (-6.1%), but increases in coal and petroleum products (52.1%) and transportation equipment (25.1%).

The export quantity index also rose 3.8%, with decreases in primary metal products (-9.9%), but increases in computers, electronics, and optical equipment (13.1%) and transportation equipment (26.2%).

The export value index has risen for 23 consecutive months, and the export quantity index for three consecutive months.

The net barter terms of trade index (83.47) fell 9.9% year-on-year as export prices decreased (-0.9%) and import prices increased (10.0%). This marks an 18-month consecutive decline compared to the same month last year.

The net barter terms of trade index is the ratio of the price of one unit of export goods to the price of one unit of import goods, indicating how many goods South Korea can import with one unit of exports. A lower index means worsening terms of trade.

The income terms of trade index (105.97), which shows the total quantity of goods that can be imported with South Korea's total export value, fell 6.5% from a year earlier due to a rise in the export quantity index (3.8%) but a decline in the net barter terms of trade index (-9.9%). This marks eight consecutive months of decline.

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