Last month, international oil prices fell dramatically, continuing a three-month decline in import prices. Export prices also fell again after a month, due to the decrease in exchange rates.
According to the Korea Bank's 'April 2025 Export and Import Price Index' announcement on the 16th, last month's import price recorded 140.32 (2020=100), a 1.9% decrease from the previous month (143.04). This marks a decline for three consecutive months. Compared to a year ago, it dropped by 2.3%, falling for the first time in six months.
Materials and supplies decreased by 4.3% compared to the previous month, while intermediate goods fell 1.3% during the same period, influenced by coal, petroleum products, and primary metal products. Capital goods and consumer goods dropped by 0.3% and 0.4%, respectively. Contract currency based import prices fell by 1.5% compared to the previous month and by 7.6% compared to a year ago.
The decline in import prices is attributed to falling international oil prices, which have led to a decrease in the prices of mineral products such as crude oil. In April, Dubai crude averaged $67.74 per barrel, down 6.6% from March ($72.49). Compared to a year ago, it was down 24.0%.
Export prices fell to 133.43 (2020=100), a 1.2% decrease compared to the previous month (135.11), marking a turn to decline after a month. However, compared to the same month last year, it increased by 0.7%. Agricultural and fishery products fell by 1.1% compared to the previous month, while industrial products, particularly chemicals, coal, petroleum products, and transport equipment, declined by 1.2%.
Contract currency based export prices dropped by 0.7% compared to the previous month and fell by 4.8% compared to a year ago. The decrease in export prices is influenced by the falling oil prices and exchange rates. Last month, the average won-dollar exchange rate was 1,444.31 won, down 0.9% from March (1,456.95 won).
Last month, the export volume index rose by 7.7% compared to the same month a year ago, driven by increases in computers, electronics, and optical devices, as well as primary metal products, while the export amount index rose by 3.1%. During the same period, the import volume index increased by 2.2%, and the import amount index fell by 3.2%.
In April, the terms of trade index for net goods rose by 1.2% compared to a year ago, as the import price (-5.3%) fell more significantly than the export price (-4.2%). The income terms of trade index increased by 9.0%, as both the net goods terms of trade index (1.2%) and export volume index (7.7%) rose.