SEOUL, 18 October 2025: Import prices in the Republic of Korea rose for the third consecutive month in September, driven by a weaker local currency and rising global energy prices, according to official data released Friday by the Bank of Korea. The central bank’s import price index increased by 0.2 percent from the previous month, extending gains of 0.3 percent in August and 0.2 percent in July.
The continued monthly rises highlight the growing impact of external cost pressures on the country’s trade-dependent economy. The September data reflect a depreciation in the Korean won, which averaged 1,391.83 against the US dollar during the month, compared to 1,389.66 in August. The weaker won has made dollar-denominated imports more expensive, particularly energy-related goods.
Dubai crude, South Korea’s key oil benchmark, rose to an average of $70.01 per barrel in September, up 0.9 percent from the previous month. By category, import prices for intermediate goods, which serve as production inputs in the manufacturing sector, rose by 0.5 percent. Consumer goods import prices increased by 0.1 percent, while prices for capital goods declined by 0.2 percent.
Energy costs remain key driver of trade prices
Import prices for raw materials edged down 0.1 percent, reflecting mixed movements within the energy segment, with rising liquefied natural gas prices offsetting a drop in crude oil costs. Export prices also posted an on-month increase in September, marking the third consecutive rise. The export price index recorded a 0.6 percent gain, following increases of 1.1 percent in August and 0.4 percent in July.
On a year-on-year basis, export prices were up 2.2 percent, bolstered by higher prices for major items including petroleum products and semiconductors. The sustained rise in both import and export prices comes amid broader inflationary trends in South Korea. The country’s consumer price index rose by 2.1 percent year-on-year in September, up from a 1.7 percent gain in August, indicating an uptick in domestic price levels after a period of relative stability.
Bank of Korea holds rate despite inflation rise
Despite the recent rise in consumer prices, the Bank of Korea has kept its base interest rate unchanged at 2.50 percent. The central bank continues to monitor global commodity movements, exchange rate fluctuations, and their impact on the domestic economy. The bank compiles the import and export price indices based on transaction prices reported by local firms, with adjustments made to reflect currency effects.
These indices serve as key indicators of trade cost dynamics and are closely watched for their influence on inflation and production costs in Asia’s fourth-largest economy. They also provide insight into the pricing trends of goods exchanged in international markets, helping policymakers, analysts, and industry stakeholders assess external pressures on domestic pricing structures and the overall trade balance. – By Content Syndication Services.