[Asia Economy Reporter Seo So-jeong] The import price index continued its upward trend for the second consecutive month due to the rise in the won-dollar exchange rate. Compared to last year, import prices increased by nearly 20%, maintaining a high level.
According to the Bank of Korea on the 15th, the October import price index (provisional figure based on the won, 2015 level 100) was 156.89, up 1.5% from the previous month. Although import prices had declined for two consecutive months in July and August, they reversed to an upward trend in September and continued to rise in October.
The increase of 1.5% from the previous month was driven by the rise in the won-dollar exchange rate and international oil prices, which pushed up prices of mining products, coal, and petroleum products. The average monthly price of Dubai crude oil rose slightly from $90.95 per barrel in September to $91.16 per barrel last month, a 0.2% increase.
The average won-dollar exchange rate last month was 1,426.66 won, up 2.5% from the previous month (1,391.59 won). In fact, import prices based on contract currency, which limits the exchange rate effect, fell by 0.6% compared to the previous month.
By item, jet fuel (16.8%), ship engines (10.7%), naphtha (5.8%), industrial liquid pumps (5.6%), stainless cold-rolled steel sheets (3.9%), and corn (2.9%) increased, while plastic film (-8.7%), acrylic acid (-8.2%), coffee (-7.1%), and flash memory (-5.7%) decreased.
The export price index last month was 132.90, up 1.3% from the previous month, marking a rise for two consecutive months. This was influenced by the increase in the won-dollar exchange rate and the rise in coal, petroleum products, and chemical products. Export prices based on contract currency, which limits the exchange rate effect, fell by 1.0% compared to the previous month.
Agricultural, forestry, and fishery products fell by 0.6% from the previous month, and manufactured goods such as computers, electronics, and optical devices declined, but coal, petroleum products, chemical products, and transportation equipment rose, pushing up the export price index.
By item, jet fuel (10.8%), caustic soda (10.3%), diesel (9.6%), ethylene vinyl acetate (9.0%), naphtha (8.7%), and RV automobiles (2.7%) increased, while capacitors (-32.3%) and DRAM (-16.2%) decreased.
The import price index rose 19.8% compared to the same month last year, marking 20 consecutive months of increase, and the export price index rose 13.7%, marking 21 consecutive months of increase.
Seo Jeong-seok, head of the price statistics team at the Bank of Korea, said, "In October, import prices continued to rise due to the increase in the won-dollar exchange rate and international oil prices," adding, "In November, due to increased uncertainty in external conditions, it is difficult to make a definitive forecast on factors affecting import price fluctuations (raw material prices, oil prices, exchange rates, etc.)."
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