Producer Prices Rise for 4 Consecutive Months... Green Chili Peppers Up 127.3%, Green Onions 42.4%, Cabbage 52% Increase

Bank of Korea February Producer Price Index
Manufactured Goods Rise 1.1% Month-on-Month Amid Rising International Oil Prices

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Producer prices have risen for four consecutive months as international oil prices continue to climb and agricultural product prices increase.

According to the Bank of Korea on the 24th, the producer price index for February was recorded at 105.85 (2015=100), up 0.8% from January's 105.05.

The index fell in October last year for the first time in five months, then rebounded by 0.1% in November, and has risen for four consecutive months since. Compared to February 2020, producer prices increased by 2.0% year-on-year, continuing the upward trend for the third consecutive month.

Looking at the month-on-month rate of change by item, coal and petroleum products (7.2%) and chemical products (1.4%) rose due to the strong international oil prices, causing manufactured goods to increase by 1.1% compared to the previous month. Notable increases were seen in naphtha (11.7%), diesel (5.0%), and benzene (11.8%).

Prices for agricultural, forestry, and fishery products rose by 3.0%, with particularly large increases in agricultural products (5.1%) and livestock products (2.0%). Producer prices for green chili peppers (127.3%), green onions (42.4%), napa cabbage (52%), eggs (22.5%), and chicken (6.2%) showed high month-on-month growth rates. Green onions increased by 341.8% compared to a year ago. Kim Younghwan, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "The rise in agricultural and livestock products was driven by reduced shipments due to cold waves and the spread of avian influenza (AI), leading to an increase in prices for agricultural, forestry, and fishery products."

Producer prices in the service sector also rose by 0.2% month-on-month, driven by increases in real estate services, restaurants, and accommodation services. Electricity, gas, water, and waste services rose by 0.8% due to increased fuel costs, with electricity, gas, and steam prices increasing. Excluding food and energy, the index rose 0.5% month-on-month and 2.1% year-on-year.

The domestic supply price index, which measures price changes including imported goods, also rose 1.5% month-on-month and remained flat year-on-year. The total output price index for February, which adds exports to domestic shipments, increased by 1.3% month-on-month and year-on-year respectively.

This content was produced with the assistance of AI translation services.