Producer Prices Rise for 9th Consecutive Month Amid High Oil Prices and Stock Market Rally

[Economy 365]

Producer prices have risen for nine consecutive months, driven by the lingering effects of high oil prices and an increase in service costs following a strong stock market performance.

According to the Bank of Korea, the producer price index for last month stood at 129.82, up 0.8% from the previous month.

Prices for manufactured goods rose by 0.7%, led by chemical products, primary metal products, and computer, electronic, and optical products.

The electricity, gas, water, and waste sector saw a 0.5% increase, as industrial city gas prices climbed by 10.3%.

Service prices rose by 1.2%, with financial and insurance services, in particular, recording an 8.3% increase—the highest growth rate since the data was first compiled in 1995.

This was largely due to a 22.2% jump in brokerage commissions following the rise in stock prices.

International passenger air travel costs rose by 16.5%, while air freight charges increased by 15.6%.

The Bank of Korea explained that the impact of the surge in oil prices immediately following the outbreak of the Middle East conflict has been reflected with a time lag in sectors such as chemical products, industrial city gas, and air services.

*This article was produced using AI audio.
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