Trade terms decline for 5th month in August

Published : Sept 29, 2021 - 12:10 Updated : Sept 29, 2021 - 12:10

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(Yonhap)

South Korea's terms of trade fell for the fifth consecutive month in August due to a rise in prices of imported goods, central bank data showed Wednesday.

The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- declined 5 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK).

The figure is calculated by dividing the index for export prices by that for import prices. It shows the amount of imports a country can buy for each unit of exports. The base year is 2015, with a benchmark index of 100.

Last month, the index for customs-cleared export prices climbed 11.3 percent from the previous year, marking the ninth straight month of increase.

The index for import prices gained 13.5 percent from a year earlier due to rising crude and raw material prices. (Yonhap)