Import prices rebound in June on rise in costs of petrochemicals, raw materials

South Korea’s import prices rebounded in June as a rise in prices of petrochemical goods and raw materials offset a fall in oil prices, central bank data showed Tuesday.

The import price index rose 0.7 percent last month from a month earlier following a 1.3 percent on-month dip the previous month, according to the preliminary data from the Bank of Korea (BOK).

From a year earlier, prices also rose 9.7 percent last month following a 4.7 percent on-year advance the previous month, the data showed.

Import prices are a major factor that determines the path of the country’s overall rate of inflation.

The Dubai crude price, South Korea’s benchmark, stood at US$82.56 per barrel in June, down from $84.04 the previous month, according to the central bank.

The Korean won averaged 1,380.13 against the greenback last month, down from 1,365.39 the previous month.

Import prices of raw materials rose 0.6 percent on-month last month, while those for intermediate goods gained 0.8 percent over the cited period.

The export price index also rose 0.9 percent last month after a 0.6 percent on-month fall the previous month, according to the data.

South Korea’s consumer prices slowed to an 11-month low of 2.4 percent in June, from a 2.7 percent on-year rise a month earlier.

It was the third consecutive month that the price decelerated and stayed below 3 percent, and June’s figure marked the lowest level since July 2023, when consumer prices grew 2.4 percent.

Early this month, the BOK kept its key interest rate unchanged at 3.5 percent for the 12th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.