Import Prices Rise for 8th Straight Month, Longest Streak Since Financial Crisis

Import prices have risen for eight consecutive months, setting a new record for the longest streak of increases since the global financial crisis. According to statistics released by the Bank of Korea on the 17th, the import price index in March 2024 stood at 145.39, an increase of 1.1% from the previous month.

The rise in import prices in March was primarily attributed to an increase in oil prices. In the same month, the average price of Dubai crude oil reached $68.40 per barrel, a 10.4% increase from the previous month and the highest level in five months.

The increase in import prices is expected to affect consumer prices, particularly for petroleum products, posing a burden on domestic inflation and economic growth. If the situation of high oil prices and a high exchange rate continues due to geopolitical risks in the Middle East, the upward pressure on import prices is likely to intensify. According to the Korea Institute for Industrial Economics and Trade, a 10% increase in international oil prices is estimated to raise domestic manufacturing production costs by an average of 0.71%.

On the 17th, the won-dollar exchange rate closed at 1493.6 won per dollar in the Seoul foreign exchange market, down 3.9 won from the previous day. On the same day, the KOSPI index closed at 5640.48, up 90.63 points (1.63%) from the previous day, while the KOSDAQ index closed at 1136.94, down 1.35 points (0.12%).

Meanwhile, the Reserve Bank of Australia (RBA) raised its benchmark interest rate by 25 basis points to 4.10%.