South Korea's producer prices rose for a second straight month in September, driven by higher electricity rates and a jump in agricultural, forestry and fishery prices.
The producer price index stood at 129.78 (2020=100) last month, up 0.2% from August, the Bank of Korea said on the 21st in its September producer price report.
Producer prices had risen for nine consecutive months since September of last year before flattening in June, then fell 0.4% in July. They have now climbed for two straight months, following a 0.1% gain in August. On a year-on-year basis, prices rose 7.7%, a smaller increase than August's 7.9%.
By category, agricultural, forestry and fishery products rose 2.6% from the previous month, as demand ahead of the Chuseok holiday pushed up farm produce by 3.7% and livestock products by 2.7%. Manufactured goods were little changed, with chemical products up 1.0% but computers, electronics and optical equipment down 1.7%. Electricity, gas, water and waste rose 1.3%, as residential electricity prices surged 13.4% after summer discounts on progressive power rates expired. Restaurant and lodging services fell 0.1% from the previous month on lower prices at hotels and tourist accommodations.
Among individual items, napa cabbage prices jumped 42.9%, while beef rose 10.4%, residential electricity 13.4%, industrial city gas 6.6% and naphtha 10.0%. Prices fell for computer storage devices, down 11.8%, tourist accommodations, down 15.8%, and domestic air travel, down 7.2%.
The supply price index, which also reflects imported goods, came in at 134.68, little changed from the previous month. Raw materials rose 3.3%, but intermediate goods and final goods each fell 0.3%, led by declines in imports. The central bank said import prices reflected customs clearance lags for individual items, including swings in global oil prices in August, as well as the won's appreciation in September.
