Key facts
- South Korea's producer prices rose for the ninth consecutive month in May.
- The producer price index (PPI) increased by 0.8% month-on-month.
- This monthly gain decelerated from April's 2.8% increase.
- Year-over-year, producer prices were up 8.5% in May.
- Higher petroleum and raw materials prices, influenced by the Middle East crisis, were the primary drivers.
South Korea's producer prices continued their upward trend for the ninth consecutive month in May, primarily influenced by rising costs for petroleum and raw materials amid the ongoing Middle East crisis. The Bank of Korea reported that the producer price index (PPI) climbed 0.8 percent from the previous month, a notable deceleration from April's 2.8 percent increase. On a year-over-year basis, producer prices saw an 8.5 percent rise in May. The increase in industrial goods prices, up 0.7 percent month-on-month, was largely driven by coal and petroleum products. Conversely, prices for agricultural, livestock, and fisheries products decreased by 0.8 percent, while service prices saw a 1.2 percent gain. The domestic supply price index, which accounts for both producer and import prices, remained unchanged from the prior month.