'July 2020 Export and Import Price Index' Announcement
[Asia Economy Reporter Jang Sehee] Last month, export prices showed a downward trend due to the won-dollar exchange rate and a decline in semiconductor prices. This marks a slight drop following two consecutive months of increase in May (0.5%) and June (0.6%).
Last month, both export and import prices declined due to the fall in the won-dollar exchange rate.
An increase in export prices positively affects corporate profitability, while the opposite acts as a negative factor. When import prices rise, it contributes to domestic inflation, and conversely, a decrease acts as a deflationary factor.
According to the Bank of Korea's "July 2020 Export and Import Price Index" released on the 13th, last month's export price index was 94.59, down 0.4% from the previous month, marking a decline for the first time in three months.
Compared to a year ago, export prices also fell by 5.8%, continuing a 14-month consecutive decline.
The Bank of Korea explained, "With the expanded decline in semiconductor prices and a slight drop in the won-dollar exchange rate, export prices turned downward after two months of consecutive increases."
By category, agricultural, forestry, and fishery products fell 0.9% from the previous month and decreased 5.8% compared to the same month last year.
Manufactured goods, including computers, electronic and optical devices, and transportation equipment, declined 0.4% from the previous month.
Looking at detailed items, key semiconductor export products such as DRAM and mobile phones fell by 6.4% and 0.9%, respectively.
Last month's import price index was 100.30, down 0.9% from the previous month due to the decline in international oil prices, breaking a two-month rising trend.
Compared to the same month last year, it fell 9.0%, continuing a six-month consecutive decline. The average price of Dubai crude oil last month was $43.30 per barrel, up 6.1% from the previous month.
By category, raw materials such as mining products fell 1.9% from the previous month.
Intermediate goods saw a 0.8% decline from the previous month, as coal and petroleum products rose but chemical products fell.
Capital goods and consumer goods decreased by 0.1% and 0.7%, respectively, compared to the previous month.
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