In October, South Korea's export price index recorded a 2% rise compared to the previous year, while the import price index experienced a decline of 2.5%, as reported by the Bank of Korea on Wednesday. In a month-over-month comparison, the country's export prices increased by 1.7% in October, rebounding from September's figures, and import prices similarly saw an uptick of 2.2%, according to the central bank's data.
Examining specific categories, manufactured goods witnessed a 2% increase in export prices year-over-year, while agricultural, forestry, and marine products rose by 1%. On the import side, raw material prices saw a significant decrease of 9.1% year-on-year in October, whereas the costs for consumer goods climbed by 1.6%.
South Korea's export volume index surged by 5.7% year-on-year in October, with the import volume index following closely with a 5.9% increase for the same period. Historically, South Korean export and import price indices experienced subdued growth in the years preceding the pandemic, but they soared to double-digit percentage increases in 2021 and 2022.
Moving into 2023, both export and import prices entered a deflationary phase, yet signs of stability began to appear in 2024. The Bank of Korea maintains a 2% inflation target concerning the nation's consumer price index, and the inflation rate of imported goods, as calculated in the local currency, serves as a key indicator for the central bank when assessing monetary policy..