February Import Prices Up 1.2%, Export Prices Up 1.4%
Impact of Rising International Oil Prices and Won-Dollar Exchange Rate
International oil prices and the won-dollar exchange rate rose, causing import prices to increase for the second consecutive month last month.
According to the "February 2024 Export and Import Price Index (Provisional)" released by the Bank of Korea on the 15th, import prices rose 1.2% month-on-month last month. Import prices showed an upward trend for two consecutive months following a 2.5% increase the previous month.
The rise in import prices was largely influenced by the increase in Dubai crude oil prices from an average of $78.85 per barrel in January to $80.88 in February, up 2.6%. International oil prices have been on the rise this year, pushing up the import price index.
The average won-dollar exchange rate also rose 0.6% from 1,323.57 won in January to 1,331.74 won in February, affecting import prices. When the dollar strengthens, the prices of imported goods also increase.
By item, import prices for mining products such as crude oil, thermal coal, and natural gas rose 2.6% month-on-month, while coal and petroleum products increased by 1.5%. Import prices affect domestic consumer prices with a time lag.
Yoo Sung-wook, head of the Price Statistics Team at the Bank of Korea’s Economic Statistics Bureau, explained, "Import prices rose mainly for mining products and chemical products due to the rise in international oil prices and the won-dollar exchange rate."
Last month, the export price index also rose 1.4% month-on-month, marking an upward trend for two consecutive months since January. The Bank of Korea explained that export prices were also significantly affected by the rise in the won-dollar exchange rate.
By item, coal and petroleum products rose 3.5% month-on-month, chemical products increased 1.6%, and computers, electronics, and optical equipment rose 1.5%.
In particular, the export price of flash memory rose 6.9% month-on-month, showing an improvement in the semiconductor industry. Semiconductors have been on an upward trend for seven consecutive months on a month-on-month basis.
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