Despite Falling Oil Prices, Rising Exchange Rate Pushes Import Prices Up for Second Consecutive Month

Export and Import Price Index and Trade Index (Preliminary) for August
Import Prices Up 0.3% from Previous Month
Export Prices Also Rise by 0.7%

Import prices rose for the second consecutive month. This was due to the Korean won to US dollar exchange rate climbing close to 1,390 won, despite a decline in international oil prices, which typically influence import prices.

According to the "Export and Import Price Index and Trade Index (Preliminary) for August 2025" released by the Bank of Korea on September 16, import prices (based on the Korean won) increased by 0.3% in August compared to the previous month. Compared to the same month last year, they fell by 2.2%.

This result occurred because the Korean won to US dollar exchange rate rose even though international oil prices declined. Last month, the average monthly price of Dubai crude oil was $69.39 per barrel, down 2.1% from $70.87 in the previous month. In contrast, the average exchange rate of the Korean won to the US dollar increased by 1.1%, rising from 1,375.22 won in July to 1,389.66 won in August.

By use, raw materials, mainly mining products such as crude oil, fell by 0.4% compared to the previous month. During the same period, intermediate goods such as computers, electronic and optical devices, and chemical products rose by 0.5%. Both capital goods and consumer goods increased by 0.7% compared to the previous month. Excluding the exchange rate effect, import prices based on contract currency fell by 0.6% from the previous month and dropped by 4.8% compared to the same month last year.

Although import prices have risen for two consecutive months, the upward trend may slow down somewhat in September. Lee Moonhee, Head of the Price Statistics Team at the Economic Statistics Department 1 of the Bank of Korea, said, "Export and import prices are greatly affected by international oil prices and the Korean won to US dollar exchange rate, but so far this month, there have not been significant fluctuations." He explained, "The price of Dubai crude oil has risen slightly compared to the previous month, and the Korean won to US dollar exchange rate has remained flat compared to the previous month." However, he added, "There is still uncertainty in both domestic and international conditions, so it is necessary to continue monitoring the situation."

Last month, export prices rose by 0.7% compared to the previous month, as the Korean won to US dollar exchange rate increased and prices of computers, electronic and optical devices went up. Compared to the same month last year, export prices fell by 1.0%. By category, prices of agricultural, forestry, and fishery products increased by 1.1% from the previous month. Manufactured goods, led by computers, electronic and optical devices, rose by 0.7%. Based on contract currency, export prices dropped by 0.3% from the previous month and by 3.7% compared to the same month last year.

The export volume index, which shows changes in export and import activity, rose by 5.4% in August compared to the same month last year, driven by increases in computers, electronic and optical devices, and transportation equipment. The export value index increased by 2.0% over the same period. The import volume index rose by 2.2% year-on-year, due to increases in computers, electronic and optical devices, and mining products. The import value index fell by 3.8%.

In August, the net barter terms of trade index rose by 2.9% year-on-year, as import prices (-5.9%) declined more than export prices (-3.2%). The income terms of trade index climbed by 8.5%, as both the net barter terms of trade index (2.9%) and the export volume index (5.4%) increased.