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Import Price Showed Significant Increase Last Month
Due to Rising Oil Price
Import Price Showed Significant Increase Last Month
  • By Jung Min-hee
  • February 15, 2017, 03:30
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South Korea’s won-based import price index reached 84.91 last month, up 2.1% from a month ago, mainly because of an increase in oil prices.
South Korea’s won-based import price index reached 84.91 last month, up 2.1% from a month ago, mainly because of an increase in oil prices.

 

According to the export and import price indices for January 2017 the Bank of Korea released on February 14, South Korea’s won-based import price index reached 84.91 last month, up 2.1% from a month ago, with respect to the reference value of 100 of 2010.

The figure for last month hit a 25-month high behind 86.54 of December 2014 and rose no less than 13.2% from a year ago. This rate of increase is the highest since October 2011, when the import price showed an increase of 14.5%. This is mainly because of an increase in oil price. The Dubai crude oil price rose from US$26.86 per barrel to US$53.71 per barrel between January 2016 and last month.

Under the circumstances, the prices of mining products, which account for 22.46% of the entire import price index, soared by 58.8% year on year. In addition, the import prices of coal, crude oil and natural gas, almost all of which are imported from abroad, jumped 61.9%. Those of chemical products manufactured by the use of crude oil and the like, which represent 11.78% of the entire index, increased 7.1% from a year earlier. Those of primary metal products, which account for 9.47%, showed a year-on-year increase of 13.3%.

Those of agricultural, forest and marine products, which have a weighted value of 38.5, are on a rapid increase as well. The import prices of these products increased by 1.9% year on year in October last year and by 5.8%, 7% and 7.2% in the following months. In the case of pork, an increasing amount of which is being imported from the United States and Canada, the import price skyrocketed by 32.1% last month.