Import Prices Rise for 3 Consecutive Months... Record High Due to Soaring Oil Prices

Bank of Korea Announces March Export and Import Price Indices

[Asia Economy Reporter Seo So-jeong] The import price index in March hit an all-time high as it rose for three consecutive months due to the sharp increase in oil prices. The month-on-month rate of change also recorded the highest level in 13 years and 10 months since May 2008. With the ongoing rise in international oil prices and raw material costs following Russia's invasion of Ukraine, import prices are expected to continue increasing for the time being.

According to the export-import price index statistics released by the Bank of Korea on the 14th, the March import price index this year (provisional figure based on the Korean won, 2015 level = 100) was 148.80, up 7.3% from February (138.73). Compared to the same month last year, it surged by 35.5%.

The significant rise was largely influenced by the international oil price, with Dubai crude oil increasing from $92.36 per barrel in February to $110.93 in March, a 20.1% rise. International oil prices rose by 72.1% compared to the same month last year.

By item, the primary metal products index (184.61), metal processed products index (126.59), and mining products index (213.53) recorded all-time highs since the statistics began. The coal and petroleum products index was 221.04, the highest in 10 years since March 2012.

Son Jin-sik, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "Raw materials, centered on mining products, rose 13.7% compared to February, and intermediate goods such as coal and petroleum products, primary metal products, and chemical products also increased by 5.2% from February."

The March export price index also rose for the third consecutive month, increasing 5.7% from the previous month to 125.03. This was the highest level in 12 years and 11 months since April 2009. Compared to the same month last year, it rose by 22.8%.

Son said, "Looking at the export price index by item, all items showed an upward trend, with primary metal products (187.25), chemical products (146.13), coal and petroleum products (225.83), and textile and leather products (119.32) recording all-time highs."