South Korea’s import price index in May up 36% YoY as oil prices surgeNews

Another blow to the South Korean economy.
The country once again experienced a sharp rise in import prices in May.
Compared to a year ago, the overall import price index rose 36% last month.
This is an annual increase for 15 consecutive months.

The Bank of Korea says the rise is mainly due to the war in Ukraine, which has pushed global oil prices to historic highs.
The price of Dubai crude, the South Korean benchmark, rose about 63% year-on-year in May.
Due to the rise in oil prices, the prices of imported mining, petroleum and coal products have also increased significantly.

And WHAT follows a spike in import prices,. usually a spike in consumer prices.
Consumer prices in South Korea rose 5.4% in May from a year ago, the fastest pace in more than a decade.
However, experts fear that it will increase even more in the near future.

“Since most of the import price increase is due to oil and grains, I don’t think it will take long for the price increases to trickle down to domestic prices. The increase is will happen very quickly, most likely within the month.This means there is a good chance that the inflation rate next month will be near or even above 6%.

Meanwhile, export prices have also increased.
Prices rose for a fifth consecutive month in May, mainly driven by petroleum products.
Choi Min-jung, Arirang News.

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