Business News Asia
According to the Bank of Korea (BOK), the producer price index (PPI) rose for the second consecutive month as rising energy costs pushed up prices for factory-made goods.
The PPI for February rose 0.4% from the previous month to 114.82, the second consecutive increase, following a 1.1% increase in January.
Year on year, the PPI rose 8.4% in February, slower than the 8.9% increase in January.
The rise in the PPI was caused by high costs for coal and oil products, which increased by 8.1% year-on-year. High energy costs drove up prices for industrial products by 1.1% year-on-year in February.
Prices for agricultural products, livestock, and fisheries fell by 5.1% in February.
The price increase comes at a time when South Korea is struggling with rising inflationary pressures due to global supply disruptions and higher demand due to the recovery of post-pandemic spending after spending slumped in the previous period.
The war between Ukraine and Russia is another factor that has raised concerns about rising crude oil and commodity prices. This could lead to higher inflation in the future.