SEOUL, Nov. 24 (Yonhap) — South Korea’s terms of trade fell for the seventh consecutive month in October as prices of imports grew at a faster pace than export prices, central bank data showed Wednesday.
The nation’s net terms-of-trade index for goods — a gauge of overall trade terms — stood at 91.26 last month, down 6.7 percent from a year earlier, according to the 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 and the base year is 2015, with a benchmark index of 100.
This marked the seventh consecutive on-year decline since April when the index fell 0.6 percent from a year earlier.
Compared with September, the index also dropped 1.5 percent.
The BOK said the index declined as import prices grew faster than export prices.
The index for import prices gained 29.9 percent amid high costs of purchasing energy products, while the index for export prices increased 21.2 percent over the same period, the data showed.