South Korea’s export and import prices rise in July

The Bank of Korea has released its data on
South Korea’s export and import prices for last month. Our business correspondent Kim Hye-sung reports. South Korea’s import prices increased for
the seventh consecutive month in July due to the weakening Korean won. The Bank of Korea says the import price index
rose one-point-seven percent on-month, recording 89-point-eight-one in July, the highest monthly
figure since November 2014. Compared to the same period last year, the
index is up more than twelve percent. The local currency weakened against the U.S.
dollar, recording an average of one-thousand-1-hundred-22-point-eight won last month, pushing up Korea’s import
prices despite a slight fall in global oil prices. In particular, intermediate goods prices increased
more than two percent on-month on rising coal and chemical goods prices. Without the change in the won-dollar exchange
rate, the Bank of Korea says July’s import prices would’ve ticked down zero-point-eight
percent on-month. Export prices rose two-point-three percent
on-month to 87-point-five-six. “Export prices rose on the back of the weakening
Korean won and the strong U.S. dollar. Export prices, especially of industrial goods
like metals and machinery,… went up.” “The Bank of Korea says export and import
prices — import prices in particular — affect future consumer prices, so this could mean
higher inflation in the months to come. Kim Hyesung, Arirang News.”

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