Import prices rise 0.7% in June on rising petrochemical goods, raw material prices

Economy

Published: 16 Jul. 2024, 15:51

Import prices rise 0.7% in June on rising petrochemical goods, raw material prices

Gasoline prices are shown at a gas station in Seoul on Sunday. [NEWS1]

Korea's import prices rebounded in June as a rise in the prices of petrochemical goods and raw materials offset a fall in oil prices, central bank data showed Tuesday.

The import price index rose 0.7 percent last month from a month earlier, according to preliminary data from the Bank of Korea (BOK). In May, the figure took a 1.3 percent dip from the previous month, ending a four-month streak of monthly gains.

From a year earlier, prices also rose 9.7 percent in June following a 4.7 percent on-year advance the previous month, the data showed.

Import prices are a major factor that determine the path of the country's overall rate of inflation.

The price of Dubai crude, Korea's benchmark, stood at $82.56 per barrel in June, down from $84.04 the previous month, according to the central bank.

The won averaged 1,380.13 against the greenback last month, down from 1,365.39 the previous month.

The import prices of raw materials rose 0.6 percent on-month in June, while those for intermediate goods gained 0.8 percent over the cited period.

The export price index also rose 0.9 percent last month after a 0.6 percent on-month fall the previous month, according to the data.

Korea's consumer prices slowed to an 11-month low of 2.4 percent in June from a 2.7 percent on-year rise a month earlier.

It was the third consecutive month that prices decelerated and stayed below 3 percent, with June's figure marking the lowest level since July 2023, when consumer prices grew 2.4 percent.

Early this month, the BOK kept its key interest rate unchanged at 3.5 percent for the 12th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]