Gas prices are seen at a filling station in Seoul, April 19. Yonhap
Korea's producer prices rose at the fastest pace in about four years in March, driven by higher petroleum and chemical product prices amid rising global oil costs, central bank data showed Wednesday.
The producer price index (PPI), a key gauge of future consumer inflation, climbed 1.6 percent from a month earlier to 125.24 last month, according to the preliminary data from the Bank of Korea (BOK).
It marked the sharpest monthly increase since April 2022, when the index also rose 1.6 percent, extending its upward trend since September.
From a year earlier, producer prices rose 4.1 percent in March, the fastest pace of growth since February 2023.
Producer prices are a key indicator of future inflation trends, as they influence the prices businesses charge consumers in the months ahead.
The increase came as prices of industrial goods jumped 3.5 percent month-on-month in March, driven by a 31.9 percent surge in coal and petroleum products, and a 6.7 percent rise in chemical products.
In contrast, prices of agricultural, livestock and fisheries products fell 3.3 percent month-on-month, while service prices remained unchanged.
The domestic supply price index, which reflects both producer and import prices, rose 3.7 percent month-on-month in March, the data showed.
The conflict in the Middle East, which began in late February following U.S.-Israeli strikes on Iran, has since escalated into a broader regional crisis, pushing up global oil prices amid supply disruptions and rattling global markets. Policymakers have warned of mounting inflationary pressure and weak growth momentum.
Source: Korea Times News
