Producer Prices Rise for 5 Consecutive Months... Pork Prices Surge 22%

[Asia Economy Reporter Seo So-jung] As prices of manufactured goods and services rise, the producer price index, a leading indicator of consumer prices, is soaring.

According to the Bank of Korea on the 23rd, the provisional producer price index for May recorded 119.24 (2015=100), up 0.5% from the previous month (118.59). This marks five consecutive months of increase.

The producer price index measures the price changes of goods and services supplied by domestic producers to the market and is used as an economic trend indicator. The producer price index rose for 13 consecutive months until November last year, remained unchanged in December, and has continued to rise since January this year.

Looking at the price index changes by sector, agricultural, forestry, and fishery products saw decreases in agricultural products (-1.7%) and fishery products (-0.35%), but livestock products rose (6.9%), resulting in a 1.5% increase compared to the previous month. Manufactured goods increased by 0.8% from the previous month, with coal and petroleum products (5.9%) and chemical products (0.7%) rising. The coal and petroleum products index (216.05) reached an all-time high.

Electricity, gas, water, and waste saw a 1.1% decrease compared to the previous month due to a decline in electricity, gas, and steam (-1.4%). Services rose 0.4% from the previous month, with transportation services (1.0%) and restaurant and accommodation services (0.9%) increasing.

Among detailed items, prices rose for pork (21.8%), eggs (4.8%), diesel (8.3%), gasoline (9.8%), international air passengers (3.3%), magazines and periodicals (4.3%), and hamburger and pizza specialty restaurants (2.9%).

The domestic supply price index, which measures price changes of goods and services supplied domestically, also rose for five consecutive months. Raw materials (1.5%) and intermediate goods (0.7%) increased, leading to a 0.9% rise compared to the previous month. Compared to the same month last year, it rose 16.1%, continuing an upward trend for 16 consecutive months.

The total output price index, which measures price changes of goods and services based on total production including exports as well as domestic shipments, also rose 1.3% from the previous month, with manufactured goods (1.9%) increasing. Compared to the same month last year, it rose 13.3%.

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