In South Korea, import prices have continued to rise for seven consecutive months, largely due to the increasing costs of raw materials, despite a decrease in international oil prices and a slight drop in the won-dollar exchange rate. According to data released by the Bank of Korea, the import price index rose by 0.4% in January compared to December of the previous year. This marks a significant period of consistent growth, being the longest stretch of increases since mid-2018, though the rate of increase has slowed compared to previous months.

The rise in import prices has been driven by significant increases in the prices of raw materials such as copper ore and liquefied natural gas (LNG), which contributed to a 0.9% increase in the mining products sector. Intermediate goods, particularly first metal products, also saw a notable price rise of 6.3%. In contrast, capital goods and consumer goods experienced declines of 0.3% and 1.4%, respectively, indicating divergent trends within various sectors.

Looking forward, Lee Moon-hee from the Bank of Korea's price statistics team has suggested that ongoing fluctuations in the won-dollar exchange rate and uncertainties in raw material pricing will need to be monitored closely to gauge future import price trends. As the dollar exchange rate fell slightly, the international oil price experienced a minor decrease. Observations in the coming months will be crucial as these dynamics play a key role in determining the overall impact on the economy.