Home > Economy > South Korea's Producer Prices Sharply Up in January
Economy

South Korea's Producer Prices Sharply Up in January

By February 27, 2017 at 10:06 pm
The producer price index stood at 102.17 in January, climbing 3.7 percent from 98.48 in the same period last year, the BOK data showed. (Photo : Getty Images)

Producer prices in South Korea's climbed sharply to their highest in two years last month as prices of agricultural products rose, according to preliminary data from the Bank of Korea released Monday.

The producer price index stood at 102.17 in January, climbing 3.7 percent from 98.48 in the same period last year, the BOK data showed. The headline index is used as an indicator of future consumer inflation.

Last month's reading is the highest level in 25 months, while the rate of increase from the year-earlier period also represents the sharpest since December 2011, when it climbed 4.3 percent from a year ago.

Compared with the previous month, the January index also increased from December's revised reading of 100.85.

The revised December figure compared to a revised mark in November of 99.25, according to central bank data. 

For the entire 2015, producer prices declined 4 percent on-year to 100.95 primarily due to lower oil prices. 

Producer prices for the agricultural and service sectors that year increased 2.3 percent and 1.2 percent, respectively, the BOK said. Growth in the service sector growth was helped by gains in real estate and hospitalities businesses.

Prices of agricultural and fisheries products rose in January by 8.9 percent from the previous year, while manufactured goods advanced 5.9 percent from a year ago.

Prices of cabbages and processed egg products rose 78 percent and 67 percent, respectively.

In particular, prices of petroleum products like gasoline saw a 36.1 percent on-year surge, with prices of fresh food accelerated 19.5 percent on-year.

Prices of diesel soared 59 percent on-year, while those of liquid crystal display (LCD) used to manufacture television sets increased 31 percent from a year ago.

Meanwhile, utility prices, such as electricity and water, dropped 4.4 percent last month from the same period in 2016.

Last month, South Korea's consumer prices rose 2.0 percent on-year, the biggest increase in over four years, mainly due to the spike in egg prices after the bird flu outbreak affected supply as well as an increase in prices of oil.

Like Us on Facebook