Import prices rose at the fastest pace in 19 months in November due to a weaker Korean won, despite falling global oil prices, according to Bank of Korea data. The index increased 2.6 percent from the previous month. This development could influence production costs and consumer prices.
The Bank of Korea's preliminary data released on Friday showed that the import price index rose 2.6 percent on a monthly basis in November, accelerating from a 1.9 percent gain in October. This marked the fastest growth since a 3.8 percent jump in April 2024 and the fifth consecutive monthly increase. On a year-on-year basis, the index climbed 2.2 percent.
The increase was largely attributed to the marked depreciation of the Korean won against the U.S. dollar, which averaged 1,457.77 won per dollar in November, up from 1,423.36 won in October. Meanwhile, the price of Dubai crude, South Korea's benchmark oil, edged down 0.8 percent on the month to $64.47 per barrel.
Import prices serve as a key driver of inflation, affecting production costs and consumer prices across the supply chain. This could heighten inflationary pressures. Separately, the export price index also increased for a fifth straight month in November, by 3.7 percent from the prior month, though the pace slowed from October's 4.1 percent rise.
These figures provide critical insights into broader price trends in the economy. The central bank is expected to closely monitor the situation as it shapes monetary policy decisions.
