Import Prices

 

The Bank of Korea announced on Dec. 10 that the won-based import price index fell by 0.8 percent from a month ago to reach 91.28, which is the lowest since March 2008.

The index has continued its downtrend due mainly to the appreciation of the Korean currency between March and June, and to the drop in oil prices since July. The drop in import prices for as long as nine consecutive months is for the first time in 23 years.

The Dubai crude oil price, which had been at US$107.93 per barrel in June, lost 28.6 percent during the five following months, and the low oil prices have been reflected to the import prices as they are.

The index based on the contract currency such as the U.S. dollar also dropped by 3.3 percent month on month. Meanwhile, the won-based export prices index gained 1.3 percent due to the depreciation of the won. Last month, the average won-dollar exchange rate was 1,095.1 won per U.S. dollar, increasing by 3.3 percent in a month. However, the November export prices index was 2.1 percent lower than a year ago.

The contract currency-based export prices index dropped by 1.5 percent between October and November as the drop in oil prices dragged down coal and petroleum product export prices. 

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