As the Won-Dollar Exchange Rate Rises, Export and Import Prices Turn Up After Four Months

Import Prices Up 2.1%... Export Prices Also Rise 0.7%

Last month, the export and import price indices both turned upward after four months as the won-dollar exchange rate rose.

According to the Bank of Korea on the 14th, the export price index (based on the Korean won) in February increased by 0.7% compared to the previous month. Despite the weakness in semiconductor prices, the rise in the won-dollar exchange rate had a significant impact. The export price index, which had been declining for three consecutive months since November last year, turned upward after four months.

The export price based on contract currency, which limits the exchange rate effect, fell by 1.0% compared to the previous month. Last month, the average won-dollar exchange rate was 1,270.74 won, up 6.0% from the previous month (1,247.25 won).

Agricultural, forestry, and fishery products fell by 2.0% compared to the previous month. Manufactured goods rose by 0.7% compared to the previous month, as coal and petroleum products increased, along with chemical products, transportation equipment, and primary metal products.

The import price index (based on the Korean won) rose by 2.1% compared to the previous month. It turned upward after four months due to the rise in international oil prices and the won-dollar exchange rate. The monthly average price of Dubai crude oil rose 2.1% from $80.42 per barrel in January to $82.11 last month.

However, compared to the same month last year, it fell by 0.5%. This marks a decline after 24 months, which the Bank of Korea explained was due to a base effect following last year's sharp rise.

The import price based on contract currency, which limits the exchange rate effect, rose by 0.4% compared to the previous month.

Raw materials, centered on mining products, rose by 2.2% compared to the previous month, and intermediate goods, including coal and petroleum products and chemical products, rose by 2.3% compared to the previous month.

Capital goods and consumer goods rose by 1.4% and 1.7%, respectively, compared to the previous month.

Seo Jeong-seok, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, said about future prospects, "Looking at the main factors affecting import prices, the won-dollar exchange rate rose by an average of 3.1% from March 1 to 10 compared to the previous month, while Dubai crude oil slightly declined during the same period. Non-ferrous metal products such as nickel, copper, and zinc fell, but due to high uncertainty in international raw material prices, it is still early to forecast March, and it is necessary to monitor the factors affecting import price fluctuations."