Import Prices Bounce Back After Six-Month Slump

In a significant shift, import prices have begun to climb once again, ending a six-month period of decline. This uptick is largely attributed to the strengthening of the dollar and an increase in international oil prices.

Key Factors Behind the Rise

The Bank of Korea's recent report highlights a 0.9% increase in the import price index for July 2025, reaching 134.87. This change is closely linked to the rise in Dubai crude oil prices, which averaged $70.87 per barrel, up from $69.26 in June. Additionally, the won-dollar exchange rate saw a 0.6% increase, further influencing import costs.

Sector-Specific Impacts

Breaking down the numbers, raw materials experienced a 1.5% monthly increase, with mining products like crude oil leading the charge. Intermediate goods, including computer and electronic optical equipment, along with chemical products, saw a 0.6% rise. Both capital and consumer goods recorded a 0.5% increase from the previous month.

Future Outlook Remains Uncertain

Despite the current trends, experts caution against predicting a long-term rise in import prices. Lee Moon-hee from the Bank of Korea points to fluctuating oil prices and exchange rates in August as indicators of potential volatility ahead.