Producer prices up in August on prices of agricultural goods
Vegetables are displayed at a supermarket in Seoul, Aug. 18. Yonhap
Korea's producer prices rose in August, driven by a rise in prices of agricultural goods caused by a heat wave, central bank data showed Friday.
The producer price index (PPI), a key gauge of future consumer inflation, increased 0.2 percent last month from a month earlier, following a 0.4 percent month-on-month decline, according to the preliminary data from the Bank of Korea (BOK).
In July, the index fell for the first time since August 2025.
From a year earlier, producer prices rose 7.9 percent in August, accelerating from the previous month's 7.7 percent month-on-month gain, the findings showed.
Producer prices are a key indicator of future inflation trends, as they influence the prices businesses charge consumers in the months ahead.
The BOK said prices of industrial goods, including petroleum and chemical products, remained flat in August compared with the previous month.
Prices of electricity, gas and water supplies gained 0.9 percent.
The data showed prices of agricultural, livestock and fisheries products rose 3.8 percent in August, accelerating from the previous month's 1.5 percent month-on-month rise, due to prolonged high temperatures during the month.
The domestic supply price index, which reflects both producer and import prices, dropped 1.3 percent month-on-month in August, the data showed.