September Import Prices Rise 26.8% Year-on-Year... Highest in 12 Years and 10 Months

The Bank of Korea Announces September Export and Import Price Indices

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Import prices rose 26.8% year-on-year, marking the highest increase in 12 years and 10 months since November 2008. Export prices also showed an upward trend for eight consecutive months compared to the same month last year.

According to the 'September Export-Import Price Index' released by the Bank of Korea on the 14th, the September import price index (provisional figure based on the Korean won, 2015 level 100) was 124.58, up 2.4% from August (121.61).

The index itself is the highest since February 2014 (124.60). The year-on-year increase rate was 26.8%, the highest since November 2008 (32.0%).

Import prices rose in September due to a sharp increase in international oil prices. Compared to the previous month, coal coke (25.6%), thermal coal (9.7%), and crude oil (5.3%) led the rise in import prices. On the other hand, among intermediate goods, system semiconductors (-1.1%) saw a price decline.

The August export price index was 114.18, up 1.0% from the previous month. This marks the highest index since July 2013 (114.92) with ten consecutive months of increase. Year-on-year, it rose 20.2%, recording the highest increase since February 2009 (22.9%).

Export prices were mainly influenced by increases in coal and petroleum products, and chemical products. Manufactured goods rose 1.0% month-on-month, while agricultural, forestry, and fishery products increased 0.6%. Among detailed items, bunker C oil (13.0%) and diesel (9.0%) showed upward trends.

Choi Jinman, head of the price statistics team at the Bank of Korea, explained regarding the outlook for import prices, "Raw material prices such as crude oil have continued to rise since October."