Korea's import prices surge in October driven by rising oil prices, weak won

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Korea's import prices surge in October driven by rising oil prices, weak won

Published: 13 Nov. 2024, 11:27

A signboard at a gas station in Seoul shows gasoline and diesel prices on Nov.10 [YONHAP]

Korea's import prices rose by the largest margin in six months in October due to rising global oil prices and the weak Korean currency, central bank data showed Tuesday.

The import price index advanced 2.2 percent last month from a month earlier, snapping two months of drops, according to preliminary data from the Bank of Korea.

The figure marked the highest on-month increase since April when the prices jumped 3.8 percent.

From a year earlier, import prices fell 2.5 percent following a 3.3 percent on-year decline in September.

Import prices are a major factor that determines the path of the country's overall rate of inflation.
October's price growth was partly attributable to high oil prices, as the average price of Dubai crude, Korea's benchmark, stood at $74.94 per barrel in October, up from $73.52 the previous month, government data showed.

It also came as the Korean won averaged 1,361 won against the greenback in October, compared with 1,334.82 won the previous month.

Import prices of raw materials added 4.1 percent on month in October, and those for intermediate goods edged up 1.6 percent, according to the data.

The export price index also climbed 1.7 percent in October following a 2.3 percent on-month decline the previous month, the data showed.

Consumer prices, a key gauge of inflation, rose 1.3 percent on year last month, marking the lowest level since January 2021.

Yonhap