S. Korea's Producer Prices Rise for Second Month as Cabbage Prices Surge 42.9%
South Korea's producer prices rose for the second consecutive month, driven by Chuseok holiday demand and changes in public utility rates. According to preliminary September Producer Price Index data released by the Bank of Korea on Oct. 21, the index stood at 129.78, up 0.2% from the previous month
South Korea's producer prices increased for the second month in a row in September, according to preliminary data from the Bank of Korea. The Producer Price Index rose to 129.78 from 129.56 in August, a 0.2% month-on-month increase. The boost was fueled by Chuseok holiday season demand and changes to public utility rates.
Agricultural and livestock prices led the surge, climbing 2.6% month-over-month. Napa cabbage prices shot up by 42.9%, driving a 3.7% jump in overall agricultural prices. Livestock prices also jumped 2.7%, with beef prices soaring 10.4% amid higher demand for holiday gifts and ceremonial offerings.
Energy costs played a role as well. The electricity, gas, water, and waste category saw a 1.3% rise, primarily due to a 13.4% spike in residential electricity prices following the end of summer discounts. Gas prices for industrial users climbed 6.6%.
Service prices declined slightly by 0.1%, as the summer peak season came to an end. Hotel rates fell 6.6%, while tourist accommodation prices dropped 15.8%.
The Bank of Korea attributed the price uptick to higher international oil prices, but noted that a 3.4% fall in the exchange rate in September helped offset import price pressures. They warned that changes in public utility rates and oil prices could continue to influence inflation in the coming months.
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