City Gas Price Increase Leads to Producer Price Index Rise in September After One Month Decline

Up 0.2% from Last Month... Cabbage Up 77% and Radish Up 34% Surge

[Asia Economy Reporter Seo So-jeong] Following the increase in city gas prices, the producer price index, a leading indicator of consumer prices, reversed from a decline to an increase within a month.

According to the Bank of Korea on the 21st, the producer price index for September was 120.16 (2015=100 base), up 0.2% from August (119.98), returning to an upward trend. Compared to the same month last year, it rose 8.0%, marking 22 consecutive months of increase.

The producer price index measures price changes of goods and services supplied by domestic producers to the market and is used as an economic trend indicator.

Looking at the price index changes by sector, agricultural, forestry, and fishery products saw livestock products fall by 3.0%, but agricultural products rose by 2.2% and fishery products by 0.1%, resulting in a 0.1% increase compared to the previous month. Manufactured goods saw declines in coal and petroleum products (-1.6%), but primary metal products (1.0%) and food and beverages (0.7%) increased, leading to a 0.1% rise month-on-month.

Electricity, gas, water, and waste services rose 2.5% month-on-month, mainly driven by city gas (6.3%). Services declined 0.2% month-on-month, with transportation services (-0.9%) and financial and insurance services (-1.3%) decreasing.

Among detailed items, agricultural products such as napa cabbage (76.8%) and radish (33.5%) saw significant price increases. Among manufactured goods, prices of ramen (7.8%) and adhesive tape (7.4%) rose, while bunker C oil (-13.3%), mobile phones (-11.6%), and gasoline (-6.7%) fell. Services such as international air passengers (-11.4%) and hotels (-10.7%) decreased, whereas magazines and periodicals (1.8%) and equipment operating leases (1.6%) increased.

The domestic supply price index, which measures price changes of goods and services supplied domestically, rose 1.0% month-on-month. Raw materials (2.5%), intermediate goods (0.9%), and final goods (0.7%) all increased. Compared to the same month last year, it rose 12.8%, continuing an upward trend for 20 consecutive months.

The total output price index for September, which includes domestic shipments plus exports, rose 0.8%. Services (-0.2%) declined, but manufactured goods (1.2%) and electricity, gas, water, and waste services (2.5%) increased.

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