Napa cabbage is stocked at a supermarket in Seoul on July 22. [YONHAP]
Korea’s producer prices rose in June for the first time in three months, driven by a jump in agricultural and livestock product prices, according to data released on Tuesday by the Bank of Korea (BOK).
The Producer Price Index, a key indicator of wholesale inflation, climbed 0.1 percent on-month to 119.77 in June, based on 2020 prices set at 100. This marks a reversal from declines of 0.2 percent in April and 0.4 percent in May.
Agricultural, forestry and marine products rose 0.6 percent, led by livestock, which climbed 2.4 percent, and agricultural goods, which rose 1.5 percent. Prices for napa cabbage surged 31.1 percent, for pork, 9.5 percent and eggs, 4.4 percent. In contrast, prices for squid and mackerel plunged 36.3 percent and 27.6 percent, respectively.
Prices for industrial products were flat in June. Computer, electronic and optical goods fell 0.6 percent, while coal and petroleum products rose 1.2 percent. Utility prices edged down 0.1 percent due to a 2.4 percent decline in industrial-use city gas.
Service prices increased 0.3 percent, driven by a 2.5 percent rise in financial and insurance services and a 0.2 percent increase in real estate services.
“The rise in prices was largely due to reduced pig slaughter volumes, a shortage in egg supply and poor spring cabbage harvests,” said Lee Moon-hee, head of the BOK’s price statistics team.
“In July, uncertainty in agricultural product prices has grown due to heat waves and torrential rains. Recent increases in global oil prices may also be reflected in future prices with a time lag,” Lee added.
Meanwhile, the Domestic Supply Price Index, which includes import prices, fell 0.6 percent from the previous month. The Output Price Index also dropped 0.3 percent, with raw materials down 4.1 percent, intermediate goods down 0.3 percent and final goods down 0.1 percent.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]