South Korea's producer price index rose 1.6 percent in March from the previous month, the fastest pace in about four years, Bank of Korea data showed Wednesday. The surge was driven by higher petroleum and chemical product prices amid rising global oil costs. Year-on-year, prices climbed 4.1 percent, the quickest increase since February 2023.
The Bank of Korea (BOK) reported Wednesday that the producer price index (PPI), a key gauge of future consumer inflation, climbed 1.6 percent from a month earlier to 125.24 in March. This marked the sharpest monthly increase since April 2022, when it also rose 1.6 percent, extending an upward trend since September.
Prices of industrial goods jumped 3.5 percent month-on-month, driven by a 31.9 percent surge in coal and petroleum products and a 6.7 percent rise in chemical products. In contrast, agricultural, livestock and fisheries products fell 3.3 percent, while service prices remained unchanged. The domestic supply price index, reflecting both producer and import prices, rose 3.7 percent.
The increase comes amid a Middle East conflict that began in late February following U.S.-Israeli strikes on Iran, escalating into a broader regional crisis. This has pushed up global oil prices through supply disruptions, rattling markets. Policymakers have warned of mounting inflationary pressure and weak growth momentum.
