Producer prices up for 2nd month in Sept. on higher prices of agricultural goods

Producer prices increased for the second month in a row in September, primarily due to higher prices of agricultural goods during the Chuseok holiday season, according to data released by the central bank on Wednesday. The producer price index (PPI), which serves as a crucial indicator of future consumer inflation, climbed by 0.2 percent from the previous month, continuing a 0.1 percent gain observed in August.

Preliminary figures from the Bank of Korea (BOK) revealed that in July, the index had dropped for the first time since August 2025. From a year ago, producer prices experienced a 7.7 percent rise in September, a slight deceleration from the month prior's 7.9 percent on-year increase. The BOK noted that prices of agricultural, livestock, and fisheries products surged by 2.6 percent in September due to heightened demand during the Chuseok holiday, which extended into the fourth week of the month.

Additionally, prices of electricity, gas, and water supplies rose by 1.3 percent last month, while the cost of industrial goods, such as petroleum, remained relatively stable.