June Import Prices Fall 15.7% Year-on-Year... Consumer Price Inflation Faces Downward Pressure Increase

Last month, import prices fell by 15.7% compared to the same month last year, with the decline widening further. Since import prices are reflected in consumer prices with a time lag, downward pressure on inflation is expected to increase going forward.

According to the "June Export and Import Price Index" released by the Bank of Korea on the 13th, import prices in Korean won terms fell 15.7% year-on-year last month. The decline has been increasing continuously this year, with -6.0% in April, -12.3% in May, and -15.7% in June.

Compared to the previous month, prices also fell by 3.4%. After a 0.4% rise in April, prices dropped 3.1% and 3.4% in May and June respectively, showing a stable downward trend.

With international oil prices remaining stable compared to last year and the won-dollar exchange rate falling, prices of minerals, coal, and petroleum products decreased.

The average Dubai crude oil price last month was $74.99 per barrel, down 33.8% year-on-year.

Compared to the previous month, raw materials prices mainly for minerals fell by 2.8%, intermediate goods by 4.5%, capital goods by 2.6%, and consumer goods by 2.1%. By item, corn (-6.3%), butane gas (-22.6%), graphic cards (-6.2%), and fruits (-6.0%) saw significant declines.

Export prices last month fell 15.7% year-on-year. Similarly, the decline has been widening with -7.2% in April, -11.3% in May, and -14.7% in June.

Compared to the previous month, export prices also fell 2.8%, widening the decline from -1.5% in May.

The Bank of Korea explained, "With the won-dollar exchange rate falling, prices of chemical products and primary metal products decreased."

In fact, the average won-dollar exchange rate last month was 1,296.71 won, which is a 1.5% increase year-on-year but a 2.4% decrease compared to the previous month, showing relatively stable recent trends.

Agricultural, forestry, and fishery products fell 3.5% month-on-month, and manufactured goods fell 2.8%. By item, frozen seafood (-3.9%), system semiconductors (-3.7%), and heat exchangers (-2.4%) were among the major decliners.

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