Rising Oil Prices Push Import Prices Up for Two Consecutive Months... Highest in 9 Years and 5 Months

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jung] Due to the rise in international oil prices and raw material costs, the import price index for February increased for the second consecutive month, reaching its highest level in 9 years and 5 months since September 2012 (138.26).

According to the export-import price index statistics released by the Bank of Korea on the 15th, the import price index for February this year (provisional figure in Korean won, base year 2015 = 100) was 137.34, up 3.5% from January (132.67).

With the rise in international oil prices, prices of mining products, coal and petroleum products, and primary metal products increased, resulting in a 3.5% rise compared to the previous month, marking a continuous upward trend for two months. However, the rate of increase narrowed compared to the previous month (4.4%).

Compared to the same month last year, it rose by as much as 29.4%, continuing an upward trend for 12 consecutive months. The average international oil price in February, based on Dubai crude, rose 10.7% month-on-month (from $83.47 to $92.36 per barrel), which had a significant impact.

Son Jin-sik, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, explained, "Raw material prices, centered on mining products, rose 7.2% compared to January, and intermediate goods such as coal and petroleum products, primary metal products, and chemical products increased by 2.4% month-on-month."

By item, the primary metal products index (172.43) and metal processed products index (124.89) recorded their highest levels since the statistics began. The mining products index was 181.67, the highest in 8 years and 6 months since August 2013 (182.68), and the chemical products index was 124.25, the highest in 9 years and 5 months since September 2012 (124.65).

The export price index for February also rose for the second consecutive month, increasing 2.1% month-on-month to 118.21. The index itself was the highest in 9 years and 8 months since June 2012 (118.32). Compared to the same month last year, it rose 20.3%, continuing an upward trend for 13 consecutive months.

By item, coal and petroleum products (10.3%) and chemical products (2.4%) showed relatively large increases.