Due to rising global oil prices, import prices in August rose 15.6% from a year earlier, the Bank of Korea said on the 15th. However, helped by a decline in the won-dollar exchange rate, they fell 2.4% from the previous month. It was the third straight monthly drop since June (-4.2%).
According to the "Import and export price index and trade index for August" the Bank of Korea released that day, import prices for mining products, which are influenced by oil prices, rose 2.1% from the previous month. Materials and supplies including mining products rose 1.5%. Compared with a year earlier, they were up 23.1%. This was due to Dubai crude jumping 15.6%, from $76.75 per barrel in July to $88.75 in August.
Excluding exchange rate effects (on a contract currency basis), import prices rose 3.2% from the previous month. However, they were up 14.7% from a year earlier, lower than the increase measured in won terms.
Export prices rose 42.4% year over year, marking the 12th straight month of gains. The jump reflected a surge in prices for semiconductors, Korea's key export. DRAM was up 253.4%, and flash memory rose 250.6%, respectively, it was found.
Compared with the previous month, export prices fell 3.7%, the lowest since December 2022 (-6.1%), in 3 years and 8 months. When the exchange rate falls (a stronger won), even if export prices are unchanged, the amount tallied in won terms declines.
The net barter terms of trade index rose 27.1% from a year earlier, the largest increase since related statistics were compiled in 1988. The net barter terms of trade index indicates how much in imports can be purchased with the money earned from selling one unit of exports. Although global oil prices are trending higher, the index posted a steep rise as semiconductor prices climbed by a larger margin.
The income terms of trade index, which shows how much in goods can be imported with total export value, also rose 60%, the largest increase on record.