Sliding won pushes import costs higher for South Korea

By Kim Dong-young Posted : December 13, 2024, 15:10 Updated : December 13, 2024, 15:10
Customers eyeing vegetables at Nonghyup Hanaro Mart in Seoul/ Yonhap
 
SEOUL, December 13 (AJP) - South Korea's import prices rose 1.1 percent in November compared to October, marking the second consecutive monthly increase, as the weak won offset falling global oil prices, a preliminary central bank data showed on Friday.

The import price index, which measures the costs of goods purchased overseas in won terms, stood at 139.03 in November, up 1.1 percent from 137.55 in October, according to the Bank of Korea (BOK). The central bank added that the index has increased by 3 percent over the last 12 months.

The Korean won averaged 1,393.38 per dollar in November, depreciating about 2.4 percent from October's average of 1,361.00, while Dubai crude oil prices fell 3.1 percent to US$72.61 from US$74.94 per barrel during the same period.

Agricultural and fishery products led the increase with a 2.6 percent rise, followed by basic metal products at 1.9 percent and coal and petroleum products at 1.7 percent. Notable increases were seen in coffee prices, which jumped 6.4 percent, and propane gas, which rose 4.0 percent.

"While international oil prices declined, import prices increased due to the impact of the won-dollar exchange rate rise," said Lee Moon-hee, head of the BOK's economic statistics statistics team.

The export price index also climbed 1.6 percent month-on-month to 130.59 in November, driven mainly by increases in coal and petroleum products prices, which rose 2.6 percent, and chemical products, which increased 1.3 percent.

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