July Import Price Index Falls 0.9%... Declines for the First Time in 3 Months

Containers are stacked at Busan Port Sinsundae Pier.
[Image source=Yonhap News]

Last month, international oil prices slightly stalled, causing the import price index to fall by 0.9% compared to the previous month, marking a decline for the first time in three months. The export price index also fell for the first time in seven months, mainly due to coal and petroleum products.

According to the Bank of Korea on the 12th, the July import price index (provisional figure based on the Korean won, with 2015 as the base year 100) recorded 153.49, down 0.9% from the previous month.

The import price index had fallen by 0.6% in April compared to the previous month, then rose in May and June, but turned downward again last month.

The Bank of Korea explained, "Due to the decline in international oil prices, prices of mining products, coal, and petroleum products decreased."

On a monthly average basis, the Dubai crude oil price fell from $113.27 per barrel in June to $103.14 last month.

By item, raw materials such as mining products and agricultural, forestry, and fishery products fell, resulting in a 2.6% decrease compared to the previous month, while intermediate goods, including coal and petroleum products and primary metal products, showed stability with a 0.2% decline. Capital goods and consumer goods rose by 1.2% and 0.8%, respectively, compared to the previous month.

However, the import price index was still high, rising 27.9% compared to the same month last year.

The July export price index was 129.76, down 2.1% from the previous month. This marked the first decline in seven months since December last year.

Agricultural, forestry, and fishery products rose 2.3% compared to the previous month, while manufactured goods, centered on coal and petroleum products, chemical products, computers, electronics, and optical devices, fell by 2.2%.

Compared to the same month last year, the export price index rose 16.3%, marking 17 consecutive months of increase.